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Tds related query

Pravin Prajapat (C.A. Final Student) (136 Points)

06 November 2012

Hi Can Anyone Tell me abt Tds Deduction Liability arise in below Situation

Mr.A having Tax Audit in F.Y. 2010-11, So He was lible to Deduct TDS in F.Y. 2011-12, fine ,

In F.Y. 2011-12 he is Not hving Tax Audit (u/s 44AB) so Still he is Liable to deduct TDS in Current F.Y. 2012-13 ,

(Is there any provision like Once TDS Liability arise it will remain Active in subsequent years also ? )

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12 Replies

CA Manish (Job) (5264 Points)
Replied 06 November 2012

If in the last F Y he is not liable for Audit then in Current F Y he is not liable for deducting TDs.

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 06 November 2012

In this case, no TDS libility shall arise in the FY 2012-13 since the provisions for TDS state that the TDS shall be liable to be paidby any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person is liable to audit of accounts under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited.

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 06 November 2012

Originally posted by : CA Manish Malu
	If in the last F Y he is not liable for Audit then in Current F Y he is not liable for deducting TDs.

Agreed with expert..

Ravi Nallipogu (Student ) (128 Points)
Replied 06 November 2012

As per income tax provisions, individual Or HUF liability to deduct tds depends on previous year tax audit u/s 44AB , income tax act 1961.

In the above case Mr.A not liable to deduct TDS for 2012-13 because Mr.A was not covered under tax audit 44AB in the previous year 2011-12

CA. Kapil Goel, DISA(ICAI) (cakapilgoel.wordpress.com) (2191 Points)
Replied 06 November 2012

There will be no TDS libility in the FY 2012-13 since the provisions for TDS state that the TDS shall be liable to be paid by any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person is liable to audit of accounts under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited.

Deepak Dargad (Chartered Accountant....) (9787 Points)
Replied 06 November 2012

Agreed with manish sir

Pravin Prajapat (C.A. Final Student) (136 Points)
Replied 07 November 2012

Thanx to All

LALIT (PROP.) (32 Points)
Replied 08 November 2012

PLS TELL ME IF A PARTNERSHIP FIRM IS ENGAGED IN CIVIL CONSTRUCTION BUSINESS AND GIVEN A CONTRACT TO ONE OF WORKING PARTNER OF FIRM THEN THERE IS NEED OF TAX DEDUCTION U/S 194 C ...PLS REPLY

vishal korade (article) (92 Points)
Replied 23 November 2012

i agreed that tds not to be deducted in current f y , if there was no tax audit in previous year, but whether assessee required to file tds returns or not?

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 23 November 2012

Not required if he is not liable to deduct TDS.

Think other way, whether all those who are not required to deduct TDS should file return?

Thx//Vaibhav

ayush (Article Assistant) (23 Points)
Replied 10 April 2014

I have query related to TDS.

In last F.Y i.e 13-14. TDS of Q4 has been filied in Q1 of F.Y 14-15 .

Regards

ayush

Venu Gopal (Engineer) (21 Points)
Replied 22 July 2014

Hai.............,

I am working for one company on contract basis its for three months .They are deducting 3750per months on the name of TDS .My total earning is per month 37500.Is it correct they doing.