Yes TDS is applicable on you if you crosses the threshold limit under respective sections.
Do I have to pay TDS for this?
We are proprietorship firm with a individual PAN and we took a loan from an individual person. we paid interest of Rs.19000 for the same on March 31st 2020 but retained the principal amount. We weren't under Audit last assessment year and filed under sec 44AD presumptive income by declaring 8% profit and did not maintain books of accounts but will be under Audit in the current assessment year as our turnover crossed the audit limit of 2 Crore last financial year (2019-20) and we are liable to deduct TDS from this year. Do we have to pay TDS on the interest paid in the last financial year and are we liable to deduct TDS for all payments made last year to other parties like sub contracters etc or only on the interest?
Asked 5 years ago in Income Tax
Dear Sir,
Basic Provisions of Section 194A are:
Any person, other than individual or HUF, who is paying interest (other than interest on securities) to a resident is required to deduct TDS.
If the individual or HUF are liable to get their accounts audited as per section 44AB [clause (a) or (b)], then, such individual or HUF would be required to deduct TDS on payment of interest (other than interest on securities) to a resident as per provisions of section 194A.
Hence, You do not need to deduct Tds.
Thanks and Regards
Shiv Kumar Agarwal
So, we should start deducting TDS for all payments from this Financial year or even last year? Bcos last year we didn't deduct any TDS for any payments even though threshold limit crossed for many payments and now there will be lot of fine and penalty. And do we have to pay TDS on the interest paid in the last financial year or on all payments?
Asked 5 years ago
Hi
TDS provisions shall be applicable to you from FY 20-21 onwards. TDS was not to be deducted in FY 19-20.]
You need to deduct TDS this year onwards on interest and also on other payments on which TDS liability arises.
Hi
Yes you need to deduct tds from the financial year 2020_2021
One is liable to deduct TDS if the turnover in financial year is above Rs. 1 crore.
Was your turnover above Rs. 1 crore, if yes you need to deduct TDS otherwise not.
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Hello,
TDS provisions would be applicable to you from F.Y. 2020-21.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You need to deduct TDS from the current F.Y.
TDS will be applicable from this year as you are covered under audit from this year. From this year TDS will be applicable as per threshold limit.
Dear Sir,
Hope you are doing well !!
You are liable to deduct TDS from this year.
You are liable to deduct TDS from this year.
Hi
Yes you need to deduct tds.
Dear Sir,
If the previous return is filed, then you can start deducting TDS from this year. Otherwise you can deposit TDS for last year with all penalties and Interest.
Thanks and Regards
Shiv Kumar Agarwal
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