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TDS Provisions applicability Tax Audit Individual Cases

TDS 1869 views 2 replies

Hi Sir

I have noticed Several TDS Sections applicable to Individuals if they are subjected to tax Audit in the Previous Financial year

The turnover limits are 1cr for Business , However the Limits are increased to 10 Crores if the Receipts and Payments are in non Cash mode (5% of total receipts or Payments)

Request you to advise Will the increased limits of 10 crores in the Previous Financial year applicable to deduct TDS or 1 crore is applicable for Individual cases

Thanks

 

Replies (2)
Quick Summary
For individuals, TDS applicability under sections like 194C, 194I, 194J depends on turnover exceeding Rs. 1 crore (business) or Rs. 50 lakh (profession) in the previous year. The Rs. 10 crore threshold for tax audit under presumptive/non-cash conditions does not change TDS deduction limits.

The increased limit of ₹10 crores applies to individuals only if their receipts and payments are non-cash, meaning digital or online transactions, and the total receipts or payments do not exceed 5% of the total business revenue.

For TDS purposes, the ₹1 crore limit still applies to individuals, unless they meet the non-cash transaction criteria. 

If an individual's business turnover exceeds ₹1 crore in the previous financial year, they are subject to tax audit and TDS provisions. However, if an individual's business has: - 

Turnover exceeding ₹1 crore but less than ₹10 crores - 

Non-cash receipts and payments exceeding 5% of total receipts or payments Then, the ₹10 crore limit applies, and they are not required to deduct TDS. 

"Request you to advise Will the increased limits of 10 crores in the Previous Financial year applicable to deduct TDS or 1 crore is applicable for Individual cases"

As per sec. 194A, 194H, 194I,194J, & 194C( through specified persons option) starts with...

"Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of........"

have specific option for not deducting TDS by 'Individual or HUF' as per first proviso of these sub sections...... as below..

"Provided 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 one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section."

There is no option for non deduction of TDS based on their tax audit applicability.

So, TDS liability for individual under these sections arises if his/her turn over exceeds ONE CRORE RUPEES.


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