Examine the applicability of tax deduction at source provision, the rate and amount of TDS in the independent following cases for the assessment year 2023-24 under the Income-tax Act, 1961. Assume that all payments are m

Provisions Rate of TDS Amount of TDS (a) Provisions of tax deduction at source under section 194C are attracted in respect of payment by a company to a sub-contractor under section 194C, tax is deductible at the time of credit or payment, whichever is earlier @ 1% in case of the payment is made to an individual. 1% ₹5,000 Since the aggregate amount credited or paid during the year is ₹5,00,000 (₹3,50,000 paid plus ₹1,50,000 outstanding balance as on 31.03.2023), Hence tax is deductible @ 1% on ₹5,00,000 (b) As per the provisions of section 194J, a Hindu undivided family is required to deduct tax at source on fees paid for professional services only if the total sales, gross receipts or turnover form the business or profession, as the case may be, in the financial year preceding the current financial year exceeds and such payment made for professional services is not exclusively for the personal purpose of any member of Hindu individual family. NIL NIL (Due to personal purpose) Section 194M, provides for deduction of tax at source by a HUF, which is not required to deduct tax at source under section 194J in respect of fees for professional service if such sum or aggregate of such sum exceeds ₹50,00,000 during the financial year. In the given case, the fees for professional service to Dr. Bhanawat is paid on 1st January, 2023 for a personal purpose, therefore, section 194J is not attracted. Section 194M would have been attracted, if the payment or aggregate of payments exceeded ₹50,00,000 in the P.Y. 2022-23. However, since the payment does not exceed ₹50,00,000 in this case, there is no liability to deduct tax at source. (c) As per section 194-IA, any person, being a transferee, responsible for paying to a resident transfer or any sum by way of consideration for transfer of any immovable property (i.e. any land other than rural agricultural land) or any building or part of a building shall be liable to deduct tax at source @ 1% where the total amount of consideration for the transfer of immovable property is not less than ₹50 lakh. 1% ₹60,000 Since the sale consideration of house property exceeds ₹50 lakh, Dhanpal is required to deduct tax at source u/s 194 IA. The tax to be deducted u/s 194-IA would be ₹60,000 being 1% of ₹60,00,000. (d) The arrangement between Arun, the customer, and M/s. Cool Cold Storage Pvt. Ltd., the cold storage owner, is basically contractual in nature and main object of the cold storage is to preserve perishable goods by mechanical process and storage of such goods is only incidental. 2% ₹10,000 Hence, the provisions of section 194C will be applicable to the amount of ₹5 lakh paid by Arun to the cold storage company. Accordingly, tax has to be deducted @ 2% (payment made to company) on ₹5 lakh. TDS u/s 194C = ₹5 lakh x 2% = ₹10,000 (e) Ravi, being a salaried individual, has to deduct tax at source @ 5% u/s 194-IB on the annual rent paid by him from the last month's rent (rent of March, 2023), since the rent paid by him exceeds ₹50,000 p.m. 20% ₹65,000 Since his landlord Mr. Rajiv has not furnished his PAN to Ravi, tax has to be deducted @ 20% instead of 5%. However, the same cannot exceed ₹65,000, being rent for March, 2023. TDS u/s 194-IB = ₹5,20,000 (₹65,000 x 8) x 20% = ₹1,04,000, but restricted to ₹65,000.