A person engaged in business whose gross receipts, turnover exceeds 1 cr, is liable to audit u/s 44AB and hence 194C will be applicable.
However, if a person opts for presumptive taxation u/s 44AD the limit is 2 cr and further is not required to get audited as per section 44AB. As such, 194C will be applicable to such person or not?
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TDS applicability
Replies (4)
It will definitely be applicable, but in next financial year.
Urgent reply will be appreciated
Already replied.
TDS liability arises in next/following year, when gross turn over exceeds 1 Cr in PY, even though income of PY declared under presumptive assessment.
As per my knowledge, and as per recent amendment 44AB does not apply to such person who file Income tax on the basis of sub section 1 of 44AD.
Further, as per 194C it is applicable to those individuals who is liable to audit u/s 44AB
As such, I think there will be no requirement to deduct TDS in current year as well as following years
Further, as per 194C it is applicable to those individuals who is liable to audit u/s 44AB
As such, I think there will be no requirement to deduct TDS in current year as well as following years
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