TDS by individual businessman

Tax is to be deducted from FY 2010-11 onwards i.e. from 1st April 2010 onwards.

Hi,

First year of Tax audit i.e. the year in which turnover crosses Rs.40L in case of proprietorship concern, TDS provisions are not applicable but in the next year, even if turnover is less than Rs.40L, TDS has to be deducted. Therefore in your case, you need to deducted from w.e.f. 1/4/10

hi,

Where the payer is an individual or HUF whose accounts are required to be audited as per the provisions of section 44AB of the Act for the immediately preceding financial year, he has to deduct tax at source.

If your accounts are subject to tax audit for the assessment year 2009-10 under section 44 AB of the Income-tax Act, 1961, your are liabile to deduct TDS on your payment  for the assessment year 2010-11.

Dear Ashok,

1. If your turnover has crossed Rs. 40 lakh in Jan., 2010, you are liable to get your accounts audited u/s 44AB for the F.Y 2009-10. But, TDS provisions will be applicable from the next financial year starting 1st April, 2010.

2. However, Finance Bill, 2010 has proposed to increase the turnover limit u/s 44AB to Rs. 60 lakhs. Hence the limit for tax audit w.e.f  1st April, 2010 will be Rs. 60 lakh. You will be required to comply with the TDS provisions only if your turnover exceeds Rs. 60 lakhs for the year 2010-11 & onwards....

I agree with all the above answers, but the limit of 40L / 60L are not applicable if the payments are in the nature of

1. Salaries - 192B

2. Payments to Non-Residents - 195

These sections contain no exemption regarding the Turnover in respect of duty to deduct tax.

So irrespective of your TO, you need to deduct tax under 192B and 195, if any and for other Sections the above answers hold good

Shiva

you will have to deduct tds now onwards i.e. from april, 2010..