Tds under section 194i

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Viswanath (Querist)

09 July 2013 Hi,

I have a doubt regarding the changes in deduction under 194I (Rent)

The new changes is for addition of 194I(A)"TDS on transfer of Immovable property other than agricultural land" w.e.f 1.6.13.

But I am not clear, whether 194I (for rent on plant and machinery & premises )still can be used or as I read in this site 194I(a)and 194I(b)can be used respectively? (is any notification is available for the usage of (a) & (b))

If I use 194I(a) for tds related to Plant and machinery, will it be wrong, as 194I(A)is for the new addition as mentioned above?

Please advice

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

09 July 2013 Section 194I has been bifurcated as below:
 Select value 4IA from the section code drop down where tax has been deducted under section 194I (a)
 Select value 4IB from the section code drop down where tax has been deducted under section 194I (b)

Please read Key Features of RPU 3.5

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

10 July 2013 4IB for Rent from House Property/Land & Building/Furniture. 4IA for Rent of Plant & Machinery.

194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident 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) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:

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