Responsible for tds on rnt

As per section 194 I  of the Income Tax act  1961 , you have deduct  TDS  , if  rent  exceeds   240000/-  per year  @ 10%  for land & Building ,  equipment  , furniture , fittings etc  and for  Plant & machinery its @ 2%  , other  responsibilities  like ,

1) payment  of   deducted  TDS  through Challan  to GOVT  account .

2) filing of TDS return in proscribe  time limit  .

3) Issue of  Form 16A  to  party  of whom you have deducted  TDS under section in time limit  .

4) making the entries in the books of accounts .

5)  prepare one excel sheet month wise  for all TDS deducted  in the month . make entry in that .

This section is not applicable  to individual , applicable to individual only  as per 2nd proviso of this section  (please  refer section 194 I  of the income tax more details )

 

Who is Liable to Deduct TDS u/s 194I ?

The person (not being an Individual or HUF) who is responsible for paying any income to a resident by way of rent is liable to deduct tax at source.

As per Budget 2017, individual /HUF (not covered under tax audit) paying rent to a resident exceeding Rs.50,000 per month are also liable to deduct TDS @ 5%. This amendment will be effective from 1 June 2017.

In case the aggregate of the amount of such income credited/paid or likely to be credited/paid during the financial year by the aforesaid person to the account of or to the payee exceeds Rs.2,40,000. The limit was Rs 1,80,000 until FY 2018-19.