CA Raj Patel (Practicing CA @ Ahmedabad) (90 Points)
20 October 2015I have a client who was covered under audit u/s 44AB since last 3 yeara. So TDS will be applicable for current year also.
He had paid contract charges u/s 194C fron April 2015 but do not exceed threshold limit of Rs.30000 for single transaction & Rs.75000 for aggregate till now.
So I have a query that will threshold limit will be applied for current year to deduct TDS or not because of TDS provisions applicable last year also?
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 20 October 2015
TDS threshold limits is applicable on year to year basis.. so yes in this year also it will apply
Miss Rinkal
(Student)
(1304 Points)
Replied 20 October 2015
Few things worth noting for an individual and huf assessee subjected to tax audit:
1. TDS provisions are applicable in case of individual and huf only, if gross receipts or turnover from the business or profession carried on by him exceeded the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year.
Therefore if assessee (individual and huf) had to get books audited u/s 44AB, as a result of sec 44AD, 44AE, etc then tds provisions are not applicable.
Also tds provisions are applicable only in the next fy and not in the same year in which tax audit is to be done. I. E if for fy 2014-15, the assessee is subjected to tax audit then tds provisions are not applicable for fy 2014-15 but applicable for fy 2015-16. And again the same test will follow for fy 2016-17, I.e if tax audit is applicable to fy 2015-16 then tds is required to be deducted in fy 2016-17 and so on.
2. If the income credited or paid exceeds the threshold limit as prescribed in tds rate chart for the given fy.
Hope you got my point
VIPIN GUPTA
(PARTNER)
(419 Points)
Replied 20 October 2015
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 20 October 2015
S.M.Dinesh Kumar
(Student IPCC)
(103 Points)
Replied 21 October 2015
CA ARUN AGRAWAL
(AUDIT MANAGER)
(59 Points)
Replied 21 October 2015
Miss Rinkal
(Student)
(1304 Points)
Replied 21 October 2015
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