Tds when sales reduced to less than 1cr?

As per Income Tax Act’1961 and the Income Tax Rules it is not mandatory file a NIL TDS Return. 

A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act’1961 for any quarter.

Partnership firm and company is supposed to deduct TDS irrespective of sales turnover.

Following persons are liable to deduct the tax at source:-

A) All Individuals (Including sole-proprietorship concerns) and HUF, who are not covered under tax audit, shall deduct TDS against all the specified payments except:-

• Interest paid
• Payment to contractor and sub-contractors.
• Commission paid
• Rent paid
• Professional fees and technical fees paid.

B) Individual/HUF who are covered under tax audit, will deduct tax at source on all specified payments.

C) Partnership firms and Companies and persons other than individuals and HUF, will deduct tax at source on all specified payments.

Above explanation will clear all confusion on deduction of TDS..

Agree with ANIL

- Partnership Firm liable to deduct TDS irrespective of Turnover limit