An individual having turnover of more than 1 CR in previous year, but assessed under presumptive income scheme, hence not subject to audit, -- Is he required to deduct tax on various payments made by him?
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TDS - requirement of TDS by individual under presumptive income
Replies (2)
Yes, presumptive taxation does not by itself give immunity from TDS. In case of an individual/HUF, liability to deduct TDS depends on whether turnover/gross receipts in the immediately preceding financial year exceeded the monetary limits specified under section 44AB for business/profession. Therefore, if the applicable 44AB limit was crossed, TDS has to be deducted on relevant payments, even if income is offered under presumptive scheme. However, if because of the enhanced business audit threshold the assessee has not crossed the applicable 44AB limit, then this TDS trigger may not apply.
A person declaring income under section 44AD is not covered by Section 44AB, and hence is not subject to tax audit or turnover limits specified in that section. Will he still be required to deduct TDS? Is requirement of tax audit not essential for an individual for being a TDS deductor?
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