tds
This query is : Resolved
08 July 2011
1.payment of rent to government for renting out premises (renting corporation building)
attracts tds?
attracts tds?
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)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- TAN for Partnership
- Free lancer income
- GST ON DAMAGED GOODS
- Specified Profession
- Small dealers gst returns filing
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
