13 January 2010
Dear all, Whethert an individual (Falls under Tax Audit)paying rent to an individual is required to deduct Tax u/s 194I ? [pmt exceeds 120,000]
13 January 2010
If the rent is paid for business purposes & claimed as a deduction in computing the income of the said individual, then tax is to be deducted u/s 194I.
If payment of rent is personal in nature(own residential purpose) & no deudction is claimed in computing the income, Sec 194I doesnot apply.
CAclubindia
