proprietor firm under section 44ad
paid to salary 300000 p.a. to person
who filed itr
we r liable to deduct tds
thanks in advance
Tds on salary incomes
Replies (4)
Quick Summary
What was turnover of the firm in preceding year?
Below 1 cr
TDS liability doesn't arise considering standard deduction.
Salary TDS by a 44AD proprietor:
• TDS on salary (Sec 192) is required from any employer (including individuals or proprietors) paying salary above the taxable limit. There's no turnover-based exemption for salary TDS.
• For Rs 3 lakh a year salary: under the new regime (basic exemption Rs 3 lakh; after the Rs 75,000 standard deduction, taxable Rs 2.25 lakh), tax is nil. So no TDS.
• If the employee has other income and files ITR, that doesn't affect your TDS calculation, unless declared to you.
• Payments to the employee are deductible business expenses even under 44AD (presumptive covers all expenses).
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