SECTION 194I: TDS ON RENT

SECTION-194I TDS ON RENT

SECTION-194I TDS ON RENT
  • Meaning of Rent : Rent includes any payment under any lease or sub lease or tenancy or any other agreement or arrangement for the use of either separately or together  any
  1. Land
  2. Building(including factory building)
  3. Land appurtenant to a building including factory building
  4. Machinery
  5. Plant
  6. Equipment
  7. Furniture or fitting
  • The security deposit which is refundable is not the part of the Rent.
  • The Payment of Advance Rent is part of the Rent and liable of TDS.
  • TDS is payable on Rent and not on GST.
  • Service charges is also part of Rent.

CONDITION OF DEDUCTION

  • All person, other than Individual or HUF, responsible to pay the Rent is liable to deduct the TDS at the time of payment of credit.
  • Individual and HUF are responsible to deduct the TDS on payment of Rent if they are liable to conduct the Tax Audit U/s 44AB of I.T.Act,1961
  • TDS on Rent is applicable when the payment of Rent exceeds of Rs.180000/ per year. For the A.Y. 2020-21 the threshold limit of Rent is Rs.240000/.
  • If Individual and HUF (not covered under Tax Audit) pay the Rent to a resident exceeding Rs.50000/ per month are also responsible to deduct the TDS on Rent w.e.f. 01.06.2017.

RATE OF DEDUCTION

Rent of Plant and Machinery : 2%
Rent of Land or Building or Furniture or Fitting
(If paid by Individual or HUF who is not liable for Tax Audit and
payment of Rent is exceeds Rs.50000/ PM)
: 5%
Rent of Land or Building or Furniture or Fitting        : 10%

Leave a Reply