TDS u/s 194IB

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This discussion clarifies whether TDS under section 194IB applies when a director pays monthly rent to a private limited company they are part of, using personal funds. It confirms that TDS is indeed applicable at a rate of 5%. Importantly, the deduction is not required monthly but rather as a single deduction at the end of the financial year or tenancy period.

H Thakar

H Thakar (Querist)

29 November 2021 Is section 194IB applicable to a person who pays compensation/rent to a Pvt Ltd company in which he is a director.
Monthly payment is done by the director from his personal accounts.

If the section is applicable then at what point of time do i need to deduct tds? Monthly or on last month of respective financial year?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 November 2021 YES, TDS IS REQUIRED TO BE DEDUCTED AT 5%. DUE IN THE LAST MONTH OF FINANCIAL YEAR/ TENANCY.

H Thakar

H Thakar (Querist)

29 November 2021 Thanks a lot for your prompt response.
My concern is that we are remitting the amount every month to respective account. Do i need to deduct every month or single deduction at end of FY will do

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 November 2021 NO NEED TO DEDUCT TDS U/S. 194-IB, EVERY MONTH. SINGLE DEDUCTION AT THE END OF FY IS ALLOWED.

H Thakar

H Thakar (Querist)

29 November 2021 Noted with Thanks..

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 November 2021 YOU ARE WELCOME.

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