Tds query

A INDIVIDUAL HAVING BUSINESS WHICH IS NOT IN AUDIT AS PER IT ACT AND AS GIVEN LOAN TO ANOTHER INDIVIDUAL ON THE CONDITION THAT THE PERSON RECEIVING LOAN WILL BE LIABLE TO PAY INTEREST AND IF THE INTEREST EXCEED 10,000 WHETHER THE PERSON PAYIN INTEREST IS LIABLE TO DEDUCT TAX(THE PERSON RECEIVING LOAN IS ALSO NOT IN AUDIT)

Replies (1)

Under section 194A, 194H, 194-I and 194J, an individual or HUF has been
made liable to make T.D.S. only if his or its total sales, gross receipts or
turnover from the business or profession carried on by him during the
immediately preceding year exceed the monitory limit specified under
clause (a) or clause (b) of section 44AB for the financial year in which such
payment is made. It has to be noted that for F.Y. 2010 -11, the liability for
TDS has to be ascertained with respect to the limits of turnover/receipt
prescribed for F.Y. 2010-11 i.e. of Rs.60.00 Lakhs or Rs.15.00 Lakhs and
not the limits prescribed for F.Y. 2009-10 i.e. of Rs.40 Lakhs or Rs.10
Lakhs. So although, the turnover limit is to be looked into for F.Y. 2009-10
but it has to be judged with the limits prescribed u/s. 44AB for F.Y. 2010-
11. Accordingly, an individual having turnover of Rs.55 Lakh s during F.Y.
2009-10 would not be liable for making any T.D.S. , under the above
sections, during the F.Y. 2010-11.

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