TDS ON RENT 194I OR 194IB

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This query is : Resolved

Quick Summary

This discussion clarifies TDS obligations for professionals. If your annual turnover is under £50 lakhs but you pay rent exceeding £50,000 per month, you are required to deduct TDS at 5% under Section 194IB of the Income Tax Act. The deducted TDS can be deposited once annually, typically from the rent paid in the last month of the financial year.

amarjeet singh

amarjeet singh (Querist)

15 March 2023 A PROFESSIONAL FILED ITR U/S 44ADA LAST YEAR BUT WISH TO GET AUDITED THIS YEAR, HIS TURNOVER IS LESS THAN 50LACS BUT PAYS A RENT OF ABOVE 50000 PER MONTH FROM THIS YEAR , SO IN SUCH CASE HE HAS TO DEDUCT TDS @5 % U/S 194IB?

THANKS IN ADVANCE

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 March 2023 Yes, you are correct; should deduct TDS u/s. 194 IB of IT act.

amarjeet singh

amarjeet singh (Querist)

15 March 2023 Thanks sir, 1 more thing tds to be deposited once for whole year after deducting it from last month rent or to be deposited monthly from each month rent.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 March 2023 It can be deposited once in last month.

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