{"id":3272,"date":"2020-01-03T17:57:38","date_gmt":"2020-01-03T12:27:38","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=3272"},"modified":"2020-01-09T16:53:29","modified_gmt":"2020-01-09T11:23:29","slug":"tds-on-rent-section-194i-194ib","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/tds-on-rent-section-194i-194ib\/","title":{"rendered":"TDS On Rent Under Section 194-I And 194-IB"},"content":{"rendered":"

After the insertion of section 194IB in the finance act, 2017, there is a lot of confusion is arising in the differences between 194I and 194IB. Well through this article, I will try to cover all your doubts related to the TDS on rent of the property.<\/span><\/p>\n

\"tds<\/p>\n

As per Section 194-I of the income tax act<\/a>, 1961, where the person is giving the rent, then he shall be required to deduct the TDS on the amount of rent and paid the rest of the amount to landlord and TDS amount to government in the 7<\/span>th<\/span> of Next month in which TDS is being deducted.<\/span><\/p>\n

In the above paragraph, you may have some questions like whether all kind of person as deductor or what is the limit for deducting the TDS or at which rate TDS would be deducted or on which rent there is a requirement for deducting the TDS. So let\u2019s begin.<\/span><\/p>\n

TDS on Rent under section 194-I<\/b><\/h3>\n

Deductor:<\/b> A person who is liable for the payment of rent and deduction of TDS is called deductor. A deductor can be any person other than an individual or HUF who is not liable for the payment of tax audit in the preceding financial year.<\/span><\/p>\n

Deductee:<\/b> This can be any resident person. Note: It is to be noted that in case, any Non-resident has given property on rent in India then the deductor shall not deduct the TDS under this section instead he shall be liable for the deduction of TDS under section 195<\/a>.<\/span><\/p>\n

Rate of TDS: <\/b>In case plant and machinery has been given on rent then the lessee shall deduct the TDS @2% on the rent payment of such plant and machinery and he shall deduct the TDS @ 10% in case of person has given any land or building or furniture and fittings.<\/span><\/p>\n

Limit for deducting the TDS: <\/b>TDS is required to be deducted by the lessee where the payment of rent exceeds Rs.2,40,000 per Annum.<\/span><\/p>\n

Note: till last year the said limit was Rs.1,80,000 per annum but as per the Finance Act, 2019, from 01.04.2019, the limit has been increased to Rs.2,40,000 per Annum. Hence, TDS on rent limit is Rs.2,40,000 per annum.<\/span><\/p>\n

Note:<\/strong> Do not confuse it with the limit Rs.50,000. This limit has been mentioned in section 194-IB.<\/a><\/span><\/p>\n

By reading above, you may get the idea of deduction of TDS on rent payment. Now let’s discuss some of the other relevant issues relating to section 194I<\/span><\/p>\n