Tds applicability for a proprietorship whom 44 ad is applicable and turnover crosses 1 cr

It is to be noted that the provisions for presumptive taxation override only sec 28 to 43C and not the provisions of TDS. Therefore, assessee declaring income u/s 44AD, 44ADA or 44AE is liable to deduct TDS. e.g. Every ‘person’ is required to deduct TDS u/s 192 if the estimated salary exceeds the maximum amount not chargeable to tax. Any individual paying salary of Rs. 5,50,000 p.a. would be required to deduct TDS even though he is

Further, sec 194A, 194C, 194H, 194I and 194J have been amended by Finance Act, 2020.
So after amendment in FA 2020, the persons having turnover of more than Rs. 1 crore but less than Rs. 2 crore and declaring income u/s 44AD would be required to deduct TDS under these sections. 
 

The 44AD election covers income computation only. It does not exempt you from TDS deduction obligations.

Section 44AD replaces Sections 28 to 43C of the Income Tax Act for computation purposes only. TDS provisions under Chapter XVII-B (Sections 194C, 194J, 194-IB, etc.) are completely separate and apply regardless of the income computation method you choose.

Key TDS obligations that continue under 44AD:

For contractor payments under Section 194C: deduct 1% or 2% TDS when a single payment exceeds Rs 30,000 or aggregate payments to one contractor exceed Rs 1 lakh in a year. This applies from your first payment that crosses the threshold, not from when turnover hits Rs 1 crore.

For professional or technical service fees under Section 194J: deduct 10% TDS when the annual payment to one professional exceeds Rs 30,000.

For rent under Section 194-IB: deduct 5% TDS if monthly rent to any person exceeds Rs 50,000. This applies to individuals and HUFs even outside of a business context.

Crossing Rs 1 crore in turnover under 44AD means you are now beyond the Rs 50 lakh ceiling for 44ADA (professionals) or approaching the Rs 3 crore ceiling for 44AD (available only if 95% receipts are digital). It does not itself trigger or remove any TDS obligation.

For the full breakdown of which TDS sections apply to which payments and the forms and due dates for each, this [TDS filing guide covering forms and penalties for 2026](https://taxgarden.in/blog/tds-filing-services-india-forms-due-dates-penalties-2026) has the complete section-wise breakdown.