Income Tax Audit (Sec 44AB) and TDS on Salaries in Dadra & Nagar Haveli and Daman & Diu

Definition

Income Tax Audit (Sec 44AB) and TDS on Salaries as it applies to businesses operating in Dadra & Nagar Haveli and Daman & Diu. Tax audit applies if business turnover crosses Rs 1 Cr (or Rs 10 Cr if cash receipts/payments are <5% of total). TDS on salaries (Sec 192), contractor payments (194C) and rent (194I) flow monthly to TRACES. Audit report due 30 September each year.

• SourceIncome-tax Act, 1961 — Section 44AB; Section 192–194Iincometax.gov.in

What it means in practice

Income Tax Audit (Sec 44AB) and TDS on Salaries is a central regulation that applies uniformly across India, including Dadra & Nagar Haveli and Daman & Diu. In Dadra & Nagar Haveli and Daman & Diu, the day-to-day administering authority and the office where filings are submitted will be Income Tax Department / CBDT.

Demo turnover Rs 3 Cr clears the Rs 1 Cr threshold easily.

• SourceIncome-tax Act, 1961 — Section 44AB; Section 192–194Iincometax.gov.in

Does Income Tax Audit (Sec 44AB) and TDS on Salaries apply to your business in Dadra & Nagar Haveli and Daman & Diu?

Deadlines and penalty

Cadence: annual — next action: 2026-09-30

Penalty for default: Sec 271B: penalty up to 0.5% of turnover or Rs 1,50,000 (whichever lower) for missing tax audit.

Citations

• SourceIncome-tax Act, 1961 — Section 44AB; Section 192–194Iincometax.gov.in