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TDS 194-I Rent

07 May 2022

I'm running a partnership firm which is not liable to tax audit but our firm is paying rent of Rs 250,000/- p.a to landlord. Should i deduct the TDS u/s 194I ?
I read the section but I'm little confused.
please clarify

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8 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 07 May 2022

NO, you are not suppose to deduct TDS.

TDS is applicable to those whose aggregate turnover in previous financial year crosses 1 Cr.

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prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 07 May 2022

You are required to deduct TDS . aggregate Turnover 1 crore ( 2nd proviso in section 194I ) is applicable only in case of Individual and HUF not in case of partnership Firm .

MPR Sanjay Kumar (3145 Points)
Replied 07 May 2022

What is mean by scrip sales?? I need some examples

Prasad Hegde (40 Points)
Replied 07 May 2022

Dear Ruchika and Prasad,
I had the same doubt. Since mine is a Partnership Firm (profession) tax audit limit is 50 lakh, but my TO is less than 50 lakh. Now the land lord telling that 194I is not applicable and he is not allowing to deduct TDS. Telling that your firm's TO is less tha Tax Audit Threshold.