Tds in case of payment of rent section 194i
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 December 2015
Hi
As per Sec 194I, TDS is to be deducted @10% on payment of rent if payment exceeds Rs. 1,80,000 p.a. Individuals and /or HUFs who are subject to tax audit are also under this obligation to deduct TDS. So, in case of sole proprietorship, if any individual ( say, Mr.A owner of sole prop business) pays rent of say Rs.2,00,000/- to the landlord of premises where Mr. A conducts business, he will deduct TDS @10%p.a., that is, Rs.. 20,000. Lets say Mr. A also pays a rent of his personal house of Rs. 3,00,000/- p.a. In this case, will Mr. A be required to deduct TDS even of the amount of rent (i.e. Rs. 3,00,000/-) he pays for personal house?
Any help would be appreciated.
As per Sec 194I, TDS is to be deducted @10% on payment of rent if payment exceeds Rs. 1,80,000 p.a. Individuals and /or HUFs who are subject to tax audit are also under this obligation to deduct TDS. So, in case of sole proprietorship, if any individual ( say, Mr.A owner of sole prop business) pays rent of say Rs.2,00,000/- to the landlord of premises where Mr. A conducts business, he will deduct TDS @10%p.a., that is, Rs.. 20,000. Lets say Mr. A also pays a rent of his personal house of Rs. 3,00,000/- p.a. In this case, will Mr. A be required to deduct TDS even of the amount of rent (i.e. Rs. 3,00,000/-) he pays for personal house?
Any help would be appreciated.
CA PARAS BAFNA
(Expert)
28 December 2015
As the concept of TDS U/s 194I is built on "income paid" rather than "expenditure incurred" , so the assessee is required to deduct TDS on Rs. 300000/- also.
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
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Missed uploading GST Invoice
- Movement of goods by packers and movers - type of sale - Reg.
- Appointment of Auditor By Form ADT-1
- Closer of business and itc of capital goods
- Gratuity paid to legal heir above 20 lakh is taxable or not
- ARCA LOGIN
- TDS Return Statement Status
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
