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TDS REQUIRED TO DEDUCT

Others 235 views 5 replies
I am a Tax audit assessee under section 44AB
I have one residential house now I do interior decoration for my house so have to pay rupees 25 lacks for interior it is liable to deduct TDS
Replies (5)
Yes deduct TDS u/s 194C

In case of expenses of personal nature TDS is Required u/s 194M if any payment exceeds Rs.50 Lakhs in a year then TDS is required to be deducted @ 5% even for a simple individual even if non-tax audited.

However, here as payment is 25 lakhs i.e. below 50lakhs so no TDS requirement as per 194M.

Also no deduction is required under section 194J if the payment is exclusively for Personal Purposes. Section 194J specifically provides exemption from TDS deduction in such cases.

 

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. ... Also, such Individuals and HUF liable to deduct TDS  @ 5% need not apply for TAN. Your employer deducts TDS at the income tax slab rates applicable. Banks deduct TDS  @ 10%.

No TDS as its of residential house personal nature. (despite you being 44AB assessee)
Since the provision of section 194C is not applicable for transactions of personal nature, 194M will apply. As the transaction limit does not exceed ₹50 lacs, no tax to be deducted at source u/s 194M.


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