Tds

In case of indivduals/HUF if the turnover or professional receipt exceeds specified sum (i.e 25,00,000 in your case)  in previous year, then he is required to deduct tax at source. Since his turnover is not exceeded the specified limit in the previos year, there is no proble.

Liability to deduct tax at source arises in case of individual only if he/she was subject to tax audit in the preceeding financial year. In your case doctor will be liable to deduct TDS in current F.Y only if he was subject to tax audit in prceeding year i.e. F.Y 2012-13.

If yes, he is liable to deduct TDS in current F.Y . You can file belated return with fees of Rs. 200 per day of default u/s 234E. In your case due date for filing of return for Q1 of F.Y 2013-14 was 15th July 2013. Since then till the date of filing of return calculate fee @ 200 per day.

Thank you Sir for the reply but he is sure that his gross receipt will exceed Rs. 25 lacs in this year so his accounts are liable to get audited for the A. Y. 14-15, so he should start deducting tax from current year or from next year ?

From the current year ie FY 2013-14

If he is liable for audit for current F.Y i.e. 2013-14, he should start deducting TDS from next F.Y i.e. 2014-15

So what will be reported in clause no. 21 of the Form 3CD for compliance of chap XVII-B regarding deduction of tax ?

Sorry Clause no. 27

Auditor should write a comment that, the assessee is subject to tax audit first time for the relevant ay Hnece liability to deduct tax did not arise in the relevant p.y

Okay. Thanks alot sir, its really helpful.