Please Help: Tax Audit under Section 44AB
Posted Date : 10-Sep-2011 , 12:40:32 pm | Posted By Ashish Kotecha
In case of individual/HUF, whether TDS provisions are applicable in the first year of tax audit?
Category : Income Tax | Answers : 1 | Comments : 2 | Hits : 4538
Answers
Answer By: Ashish Karundia
Dear Friend an individual/HUF shall be liable to deduct TDS, in case where they fulfill the criteria to deduct such TDS, whether or not they are liable for Tax Audit in case where they are making payment of salary u/s 192 and in case where a payment(except salary) is made to a non resident u/s195. Therefore, in these two cases TDS provisions are applicable in the first year of tax audit also.
However, if the individual/HUF is making payment towards rent (194I), any contract to a contractor(194C),commission or brokerage(194H) and profession/technical fees(194J), then he shall be liable to deduct TDS only in the case where they are required to get their tax audit done in the preceding financial year. Therefore, these TDS provisions are not applicable in fist year of tax audit.
Hope the above suffice. In case of any further clarification , please let us know.
However, if the individual/HUF is making payment towards rent (194I), any contract to a contractor(194C),commission or brokerage(194H) and profession/technical fees(194J), then he shall be liable to deduct TDS only in the case where they are required to get their tax audit done in the preceding financial year. Therefore, these TDS provisions are not applicable in fist year of tax audit.
Hope the above suffice. In case of any further clarification , please let us know.
Comments
CA VIPIN GARG
10-Sep-2011 , 05:29:57 pmYes they are required but only in case payment made to contractor u/s 194 and payment to non resident u/s 195. In all other cases they are not required if it is their first year when they got covered under tax audit regime...... Hope you got the answer you are looking, have a nice day.........
Ashish Kotecha
12-Sep-2011 , 05:24:28 pmThanks