Hello sir,
I have given on rent the premises for 20 k rent on april 2009 to some newly established firm who has started his business in april 2009 only. He has not deduced any TDS.
On asking he told me that as he has started his buisness in april2009 and has not excedede 40 lacks of turnover of his business ....so he is not liable 2 dedduct any tax (TDS)of mine.
is he saying correct.or any another similar kind of above mentioned thing is there?
Thnx in advnce
In case of Individual/HUF , TDS is liable to be deducted ONLY if SUCH INDIVIDUAL / HUF was liable to tax audit in the preceding financial year.
dear v dcvs
under tds provisions the language is clearly shows that the limits of payment of tds for non -individual non huf then in my view and by reading below language the if the aforesaid firm is not an huf then the law is applicable otherwise the law is not applicable in both of cases you are free from tds
but here i had attached the provisions of 44AB and according to provisions the firm would be eligable when person is complete his previous year and then audit so when the finally previous year is over then the case arises for tds payment in next previous year
attached: provisions in section 194I and 44AB.
92[Rent.
93194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to 94[a resident] any income by way of rent95, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, 96[deduct income-tax thereon at the rate of
97[(a) two per cent for the use of any machinery or plant or equipment; and
(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]
Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and twenty thousand rupees :
98[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section.]
Explanation.For the purposes of this section,
99[(i) rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,
(a) land; or
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); or
(d) machinery; or
(e) plant; or
(f) equipment; or
(g) furniture; or
(h) fittings,
whether or not any or all of the above are owned by the payee;]
(ii) where any income is credited to any account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]
Audit of accounts of certain persons carrying on business or profession.
(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds forty lakh rupees in any previous year 49[***]; or
(b) carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any 50[previous year;
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