Regarding TDS us 194-I

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This discussion clarifies the application of TDS under Section 194-I of the Income Tax Act concerning rent payments. It confirms that no TDS is required if the annual rent paid does not exceed ₹2,40,000. Furthermore, in cases of joint ownership, the threshold limit for TDS deduction is applied individually to each co-owner, not on an aggregated basis.

shriram Malav

shriram Malav (Querist)

29 May 2021 According to Sec 194-I Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of—

(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:

Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed 52[two hundred and forty thousand rupees] :

Query no. 1 Is it Required to deduct tds if the amount of rent paid during the year is Rupee 2,40,000 ?

Query no. 2 In case of a joint Ownership where one joint holder gives consent to pay entire rent to another joint holder through lease deed, Is the threshold limit should be ascertained each co-owner wise or aggregated basis ?

Thanks & Regards