Lalit, an individual whose total sales in business during the year ended 31.3.2023 was - 1.50 crores, opted to compute income under section 44AD for…

Lalit is required to deduct TDS under section 194C for contract payments and under section 194-I for rent paid for office premises during the previous year 2023-24 since Lalit's turnover for the previous year 2022-23 exceeded 1crore. Thus, tax deduction under section 194C would be - 5,000 5 , being 1% of 5lakhs. Mr. Lalit is also required to deduct tax at source @10% u/s 194-I on the rent paid for office premises and for furniture, fixtures and vacant land appurtenant to office to Mr. Hemant, since aggregate of rent i.e.,2,58,000 [(16,000 +5,500) x 12] paid during the P.Y. 2023-24 exceeds the threshold limit of 2,40,000. The tax deduction under section 194-I would be - 25,800, being 10% of 2,58,000. 5 ITC Ltd v. CIT (2016) 384 ITR 14 (SC) 6 TDS would be - 5,050, if it is assumed that - 5,00,000 is the net amount after TDS.