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TDS / TCS 939 views 8 replies

to who Tds is applicable whether Partnership or Proprietorship or Both……………….?

Replies (8)

to Both of Them

Normally both but if it is TDS on contractor's fees than Individual is not liable to deduct TDS.

For Both of them.

In the case of a partnership firm TDS is applicable from day one. But in the case of a proprietorship firm(Individual) TDS is applicable for salaries paid without any condition. Other provisions of TDS are applicable only if turnover or gross receipts of the assessee, as the case may be, exceeded the prescribed limits under section 44AB of The Income Tax Act,1961.

In the case of a partnership firm TDS is applicable from day one. But in the case of a proprietorship firm(Individual) TDS is applicable for salaries paid without any condition. Other provisions of TDS are applicable only if turnover or gross receipts of the assessee, as the case may be, exceeded the prescribed limits under section 44AB of The Income Tax Act,1961.

   The explanation given by CA Pravin Ahujaji is the proper solution to your query..I do agree with him

TDS provisions are applicable to partnership firm irrespective of their turnover. However, an individual or HUF, whose books of accounts are required to be audited u/s.44AB during the financial year immediately preceding the financial year in which the income is to be credited or paid, shall be liable to deduct TDS under the provisions of Sec.194A, 194C, 194H, 194I and 194J. TDS provisions of Sec.192 are applicable to individual or HUF provided they are paying taxable salary during the year irrespective of fact whether they were liable for tax audit in preceding year or not.

Pravin & Ashok has given correct solution to your query.


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