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Tds applicable on section 44ae.

13 January 2017

Sir, My client will make a IT file by filling ITR 4s(Section 44AE) on his income of rent from hiring tata ace in a company. Company is paying approx Rs. 22,000 - 25,000 p.m in cheque or on account. Section 194 C or 194I will applicable on it? Please guide me anyone.

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4 Replies

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 14 January 2017

DEAR SIR, TDS SECTION 194 I IS APPLICALBE

Dipankar Chakraborty (407 Points)
Replied 14 January 2017

Mukesh Ji, In case of 194I the following items are covered.

land; or

b) Building (including factory building); or

c) Land appurtenant to a building (including factory building); or

d) Machinery; or

e) Plant; or

f) Equipment; or

g) Furniture; or

h) Fittings whether or not any or all of the above are owned by the payee

Sub-letting is also covered.

But assessee hold vehicle then are you sure this section is applicable.

Please guide me properly as this is very important matter for me.

Dipankar Chakraborty (407 Points)
Replied 14 January 2017

Mukesh Ji,

My client used this tata ace for transporting goods. He is receiving Rs. 20-25 thousands approx but want to shows Rs. 7,500 /- minimum as per section 44AE. Then any problem will arise from TDS side. If yes then please clarify me.

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 15 January 2017

DEAR SIR , AS YOU FIRST ARTICLE , YOU SAYS 'income of rent from hiring' . IT MEANS YOUR CLIENT CHARGE MONTHY HIRE CHARGE INCOME OF VEHICLE. BUT IN THE THIRD REPLY YOU SAYS THAT YOU CLIENT CHARGE FOR GOODS TRANSPORTATION .

I WANT TO SAY THAT VEHICLE RENT HIRING AND GOOD TRANSPORT IS TWO DIFFERENT ACTIVITY AND DIFFERENT INCOME SOURICES .

SO KNOW THAT AS YOU THIRD REPLAY"My client used this tata ace for transporting goods. He is receiving Rs. 20-25 thousands approx but want to shows Rs. 7,500 /- minimum as per section 44AE. Then any problem will arise from TDS side. If yes then please clarify me.'

TDS DEDUCTION U/S 194 I AND 194 C NOT MATTER FOR YOU CLIENT , HE IS PROVIDE VEHICLE .

TDS SECTION IS MATTER THE RELATIVE TO FIRM THATS MAKE PAYMENT TO YOU CLIENT FOR GOODS TRANSPORT.

SO THERE IS NO ANY PROBLEM CREATE TO YOU CLIENT FROM TDS SIDE.