Rent paid TDS sec 194i or sec 194i(b)

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This discussion clarifies the distinction between Section 194I and 194IB of the Income Tax Act concerning Tax Deducted at Source (TDS) on rent. Section 194I applies to businesses and professionals requiring a tax audit, with TDS deducted if rent exceeds £2.4 lakhs annually. Section 194IB is for individuals or HUFs not liable for tax audit, requiring TDS deduction at 5% if monthly rent surpasses £50,000.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

29 March 2024 Sir,
Tax audit it assessess rent paid to another tax audit assessess
Question:
Sec 194 I or sec 194 I (b) correct and difference between both sections.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 March 2024 194I applicable in this case.
According to Section 194IB, it is mandatory for any person, i.e. individuals / HUF not liable to audit u/s 44AB, to deduct taxes for rent paid to a resident, exceeding Rs 50,000 per month.

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CA Roomi Gupta

CA Roomi Gupta (Expert)

29 March 2024 Section 194 I: TDS @ 10% is required to be deducted by only those categories of businesses /profession who are required to get their tax audit conducted by a CA under Section 44AB, If Rent paid/ payable during the Financial Year is more than Rs. 2.4 Lakhs .
194 IB: An Individual or HUF is paying rent of more than Rs. 50,000 per month and is not falling in the above category – such person would also be required to deduct TDS @ 5% under Section 194IB.

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