LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

TDS-194I or 194IB

14 November 2019

Individual whose turnover for previous year exceeds Rs.1crores. So,TDS provision is applicable to him for current year.
if he made payment more than 50000 per month als
rent for his residential purpose,whether he has to deduct TDS under sec 194I or 194IB.

Reply
Follow
Share

13 Replies

rama krishnan (12234 Points)
Replied 15 November 2019

If he's liable to audit his books as per 44ab, then tds to be made under section 194I else under 194IB

Kapadia Pravin (17249 Points)
Replied 15 November 2019

When individual is paying rent of more than 50000/- p.m. he has to deduct TDS under 194IB @ 5%

Here turnover, audit, 44AB, all are not relevant.

sabyasachi mukherjee (26057 Points)
Replied 15 November 2019

@ sai prasanth

tds applicalble under section 194I.
exceeds 50000 but not Rs.240000.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 15 November 2019

@ kapadia I think section 194IB is applicable only to non audit cases where rent payments are paid in excess of rs. 50000 per month. All audit cases are required to deduct TDS at 10% under 194I if the aggregate of the rental payments exceeds 240000 Correct me if I'm wrong

Kapadia Pravin (17249 Points)
Replied 15 November 2019

@ Ramakrishnan
Thanks for seeking clarification.

it is clear from the query that time Assesee is an individual under tax audit.

But it's also provided he pays rent 50000/- for his residential purposes in his individual capacity and it is not business expenditure.

That's why 194IB @ 5% is applicable (and note 194I).

Hope it's clarified. Good day Sir

sabyasachi mukherjee (26057 Points)
Replied 15 November 2019

@ rama
sec 194IB is for individual.
and rs.50000 threshold limit.
rate of tds 5%.

Kapadia Pravin (17249 Points)
Replied 15 November 2019

Everybody knows 194IB section details. sanyasachi, Important is your reply with support. Do you agree with any of the above posts ? If yes please state so.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 15 November 2019

Sorry I didn't notice that rent was paid towards residential purpose

Kapadia Pravin (17249 Points)
Replied 15 November 2019

It's okay Mr Ramakrishnan sir

CA R SEETHARAMAN (CA Practice ) (143218 Points)
Replied 18 November 2019

As turnover exceed 1 cry TDS u/s 194 I applicable.

Kapadia Pravin (17249 Points)
Replied 18 November 2019

@ Seethraman,
But sir it is also mentioned in the query that he pays rent 50000/- for his residential purposes in his individual capacity. And that's why 194-IB
Pl revert .