tds
This query is : Resolved
vignesh srinivasan
(Querist)
08 July 2011
1.payment of rent to government for renting out premises (renting corporation building)
attracts tds?
attracts tds?
CA Navin Jain
(Expert)
09 July 2011
Yes, tds is applicable under sec 194I
10 July 2011
As per the provisions of Section 194I rent received Rs.1,30,000 per year TDS is to be deducted.
Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person 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) Fifteen per cent if the payee is an individual or a Hindu undivided family; and
(b) Twenty per cent in other cases :
Provided that no deduction shall be made under this section 174 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 one hundred and twenty thousand rupees.
Explanation : For the purposes of this section, - (i) "Rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;
(ii) Where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.
Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person 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) Fifteen per cent if the payee is an individual or a Hindu undivided family; and
(b) Twenty per cent in other cases :
Provided that no deduction shall be made under this section 174 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 one hundred and twenty thousand rupees.
Explanation : For the purposes of this section, - (i) "Rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;
(ii) Where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.
11 July 2011
sec.194 I explains as
Payment?
1) Sec. 194I Rent
(by any person to any
resident)
When to deduct?
2) Payment or
credit, whichever
is earlier
Rate ?
3)Machinery or
plant or
equipment-
2%
Land or
building or
furniture or
fittings- 10%
Threshold limit?
4) Rs.180000 or
less (Rs.120000
before July 1 2010)
Can it be deducted at a lower rate?
5) Yes, form no.13
appln to AO can
be made.
No TDS on?
6) (if recipient is
govt. or local
authority)
Payment?
1) Sec. 194I Rent
(by any person to any
resident)
When to deduct?
2) Payment or
credit, whichever
is earlier
Rate ?
3)Machinery or
plant or
equipment-
2%
Land or
building or
furniture or
fittings- 10%
Threshold limit?
4) Rs.180000 or
less (Rs.120000
before July 1 2010)
Can it be deducted at a lower rate?
5) Yes, form no.13
appln to AO can
be made.
No TDS on?
6) (if recipient is
govt. or local
authority)
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