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Tds efiling eligibility

ramesh agrawal (business) (179 Points)

13 May 2012

I want to know if any proprietor firm whose turnover is below 1 crore is liable to deduct tds from interest payments and file tds returns. Also whether any propritor firm whose accounts are audited are liable to file e-TDS returns?

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3 Replies

Vishwas V Rao ( Chartered Accountant) (239 Points)
Replied 13 May 2012

For the current year i.e financial year 12-13, your liability to deduct TDS is determined based on the fact whether you where subject to tax audit in the immediately preceding financial year i.e 11-12 ( AY 12-13). So, if in the year 11-12, turnover was more than 60lakhs, you are liable to deduct TDS in the current year. And there is no relevance given for the turnover of the current year with respect to this particular issue of determining liability for making TDS.

Again regarding E-TDS, if the assessee was subject to tax audit (u/s 44AB) in the immediately preceding, he is liable to file an E-TDS return.

meghraj sharma (Expert) (22 Points)
Replied 13 May 2012

But tds liability depends upon amount paid to a person..as per sec 192 to 197.....

Rakesh Gupta (Vice President Finance) (92 Points)
Replied 14 May 2012

Dear Meghraj,

Applicability of TDS under various section of the IT Act, 1961 depends on the a few factors in addition to the amount paid to a person. What Mr. Rao has stated is one of those factors. Therefore, the liability to deduct tax at source is to be determined taking into consideration all the applicable factors as specified in the section.