Hello,
Our organization (sole proprietorship) has been liable to have 44AB audits done in the past Financial Years. Due to this, we have been liable to deduct tax at source, and we have been doing so. We have a TAN number, under which TDS is being made and TDS quarterly returns are being filed.
During the FY2009-10, the turnover of the organization is less than 40 Lakhs and so we are not liable for 44AB audit during FY2009-10. This means that during FY2010-11 (the current FY) we are not liable to deduct tax at source.
My questions are:
1) Can we safely stop deducting tax at source during FY2010-11?
2) Do we have to inform the IT department that we have stopped deducting tax at source by sending them a letter?
3) Do we have to file quarterly TDS returns in future? (The current format of the qtrly returns do not have a facility/way of saying that we have stopped deducting tax since we are no longer liable to).
4) Is there any other additional advice the experts here can give us on this matter?
I would be grateful if you folks could give me some advice on this.
Thanks in advance.
CAclubindia
