SECTION 194IB : TDS ON RENT OF PROPERTY

SECTION-194IB : TDS ON RENT OF PROPERTY  W.E.F. 01.06.2017

SECTION 194IB : TDS ON RENT OF PROPERTY
  • 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 Individual or HUF, who is not required the Tax Audit , responsible to pay the Rent is liable to deduct the TDS at the time of payment or credit.
  • TDS on Rent is applicable when the payment of Rent exceeds of Rs.50000/  per month to a Resident.
  • Tenant of the property is not required any TAN . They are required the PAN of the Land lord or Payee.
  • Form 26QC is the challan cum statement for reporting the transaction liable to TDS on Rent under this section.

RATE OF TDS

  • All Individual or HUF, who is Tenant or Payer or Lessee , required to deduct the TDS @ 5% at the time of payment or credit of Rent to Land owner or payee.
  • TDS on Rent is applicable when the payment of Rent exceeds of Rs.50000/  per month to a Resident.

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