RENT TDS for individuals

Hi suresh...

Section 194I doesnot apply to Individual and HUF...

Section 194I goes like this.....Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person 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 cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of—

he is liable to deduct only if he is covered under audit in section 44AB and that too when rent is for office building and not for resedential purpose

Hi ashish

Here suresh has clearly mentioned dat the assessee is a salaried person and he is not carryin any business so applicability of section 44AB is irrelevant....

and thus a salaried person does not have to deduct TDS....I stand still on my opinion...

yes dear, thats what i mentioned

thanks & regards

Thx Harshal :)

Thx Ashish /)

 NO

 yes i agree with harshal 

because  tds on rent sec 194 - I is only applicable when there is person is NINH i.e non individual and non huf

No. Rent up to Rs.12000/- P.M no need to deduct tds

Hai Mr. Ramesh

194 I applies only when rent exceeds Rs.1,20,000/- p a and not Rs.12,000/- p.m

TDS provisions are not at all applicable to salaried persons. Tax has to be deducted at source only if the expenditure is to claimed as deduction from profits and gains of business and profession. Further, rent is not allowed as deduction to salaried persons from salary. For a salaried person, there is no applicability of provision. So, the questions of 44AB, 120000 p.a., Individual/HUF, etc. doesnot arise.

Further, i would like to clear that if the rent is paid for residential purposes and is to be claimed as deduction under the profits and gains of business and profession (i.e. to say when a company takes a guest house and claims the rent as deduction from its income) then TDS provisions shall be attracted if the rent exceeds the threshold limits.

To conclude TDS provisions shall not be applicable to a salaried person when he makes any payments.

 TDS is not applicable