I registered my freelancing business as sole proprietor. I want to know if I have to pay TDS quarterly. Or should I just pay self assessment tax at the end of the year?
Dear Sir,
In the first year of business, you need not to deduct TDS in most if the cases.
However, you need to deduct TDS of your employees and deposit it to the government.
Please refer below link to understand more about the TDS.
http://www.livemint.com/Opinion/vayaeopnKVWzdgXRtBXX8I/When-individuals-need-to-deduct-TDS.html
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Thanks Abhishek. The article is informative. As a professional who is a proprietor, I receive payments from international clients. Should I pay TDS for myself (not my employees) every quarter based on IT projections for the year. Or should I pay only self-assessment tax at the end of the year? My revenues are less than 25 Lacs, the current limit for annual audit.
You will have to pay advance tax. The next dye dates for advance tax is 15 December 2017 and 15 March 2017
Hii
In your given case TDS provisions not applicable , on proprietorship if last year accountes Audited then TDS provisions applicable
On your income if income tax payable more than Rs. 10000 than Advance Tax Provisions applicable and you have to pay tax accordingly
Otherwise interest under section 234B & 234C applicable
Sir for payment to self i.e. proprietor there is no tds to be deducted. You need to pay only self assessment tax at the year end based on your income.
Hello Sir,
I assume what you are trying to ask here is if you are required to pay advance tax (and not TDS). The answer is YES, you are supposed to pay Advance Tax every quarter to avoid Interest.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hi,
you are not liable to pay TDS, as you are sole proprietor , the profit you earned after deducting expense is your income, on that you have to pay tax.
you are required to pay advance tax.
Advance Tax : Installments & Due Dates w.e.f. 01.04.2016
Due Date Advance Tax Installment Amount
15th June At least 15% of Tax on total income for the year.
15th September At least 45% of Tax on total income for the year less advance tax already paid.
15th December At least 75% of Tax on total income for the year less advance tax already paid.
15th March 100% of Tax on total income for the year less advance tax already paid.
If Advance Tax is not paid in full for installments falling due on 15th June, 15th September and 15th December, interest at the rate of 1% on the short amount for 3 months is to be paid u/s 234 C.
you can also pay tax on presumptive tax basis under section 44ADA
The presumptive taxation scheme is available only to the individual taxpayers. The HUF and partnership firms also got the entry but it is NOT for the company and LLP.
The presumptive taxation scheme is available to almost every professional.
if your total annual turnover from profession exceeds ?50 lacs, You can’t enjoy the presumptive taxation scheme under section 44ADA.
The Applicability section 44ADA starts from the financial year 2016-17. The professional can claim presumptive taxation relief from the April 2017.
The presumptive Assessment rate for the professionals is 50%. It means out of ?100 earning, ?50 is considered as the profit.
For any further detail you can reach me at agarwalvishakha23@gmail.com
