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
- Land
- Building(including factory building)
- Land appurtenant to a building including factory building
- Machinery
- Plant
- Equipment
- 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% |
