TDS on residential flat_TAN number

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An individual with business income and a TAN number, paying over £50,000 monthly rent for their residence, is seeking clarification on TDS deductions. The core question is whether to apply the 5% TDS under Section 194IB or the 10% TDS under Section 194I, given they already possess a TAN. Experts confirm that Section 194I applies, meaning the transaction must be reported in monthly tax payments and quarterly TDS returns, even if personal in nature, and Form 16A will be issued.

Dipen

Dipen (Querist)
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04 November 2023 Dear Experts,

An individiual having business income and having TAN number (since turnover crossed 1 CR last year) is paying rent more than 50k per month for residential purpose

In this case , is he liable to deduct 5% tds under section 194IB or 10% tds under section 194I since he is already having TAN

Please advice

Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 November 2023 10% tds under section 194I since he is already having TAN

Dipen

Dipen (Querist)
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05 November 2023 Thanks sir!

In that case this transaction to be included in monthly tax payment and quaterly TDS returns even if personal in nature? Also in that case form 16a will be generated or form 16c?

Please advice

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 November 2023 Yes, you are right. 16a applicable.

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