Examine and compute the liability for deduction of tax at source, if any, in the cases stated hereunder, for the financial year ended 31st March,…

(i) Where the payer is an individual or HUF whose total sales, gross receipts or turnover from the business carried on by him exceed 1crore during the financial year immediately preceding financial year in which such rent was credited or paid, is liable to deduct tax at source under section 194-I. Since the turnover from business of Mr. Shivanand was 202lakhs for the F.Y. 2023-24, he is liable to deduct tax at source under section 194-I in respect of rental payments during the financial year 2024-25. Section 194-I provides that rent includes any payment, by whatever name called, for the use of land or building together with furniture, fittings etc. Therefore, in the given case, apart from monthly rent of 15,000 p.m., service charge of 6,000 p.m. for use of furniture and fixtures would also attract TDS under section 194-I. Since the aggregate rental payments of 2,52,000 to Mr. Sam during the financial year 2024-25 exceeds - 2,40,000, Mr. Shivanand is liable to deduct tax at source @10% under section 194-I from rent paid to Mr. Sam. The amount of TDS u/s 194-I would be - 25,200. (ii) An individual who has total sales, gross receipts or turnover from the business carried on by him exceeding 1crore in the immediately preceding financial year i.e., F.Y. 2023-24, is liable to deduct tax at source under section 194C for the financial year 2024-25 in respect of the payment made to contractor exceeding - 30,000 in a single contract and - 1,00,000 in aggregate of contracts during the financial year. Since, turnover of Mr. Jay was - 2.20 crores in the financial year 2023-24 and as the payment during financial year 2024-25 to the contractor has exceeded the limits prescribed in section 194C, tax has to be deducted under section 194C. The rate of tax deduction is 1% as the contractor is an individual. Accordingly,9,000/- is required to be deducted at source u/s 194C by Mr. Jay. (iii) The limit of 30,000 for non-deduction of tax under section 194J would apply separately for fees for professional services and fees for technical services. This means that if a person has rendered services falling under both the categories, tax need not be deducted if the fee for each category does not exceed - 30,000, even though the aggregate of the amounts credited to the account of such person or paid to him for both the categories of services exceed - 30,000. Therefore, Whiteblue Pvt. Ltd. is not required to deduct tax at source in respect of the fees either at the time of credit or at the time of payment. (iv) No, UVW Ltd. is not liable to deduct tax under section 194D on the insurance commission of 1,50,000 paid to XYZ Ltd. during the financial year 2024-25. As per Notification No. 28/2024 dated 7th March 2024, any specified payment, including insurance commission covered under section 194D, made to a qualifying IFSC unit is exempt from TDS, provided certain conditions are fulfilled. These conditions include the furnishing of a declaration by the IFSC unit indicating the ten consecutive assessment years for which the deduction under section 80LA is claimed. Since, as it was mentioned XYZ Ltd. has complied with all the requirements, UVW Ltd. is not required to deduct tax at source on the insurance commission paid to XYZ Ltd.