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.
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.