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Tds 194i rent

Akhil Kumar (Finance Professional) (45 Points)

18 June 2014

If a person pays a rent of 1lakh for plant and 1,10,000 for building (total: 2,10,000) to X, whether TDS u/s 194I applies?

I want to know whether limit of 1,80,000 is available seperately for

(a) plant, machinery and

(b) land, building, furniture

or is it for both (a) and (b) together ?

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6 Replies

ANANT (Service) (156 Points)
Replied 18 June 2014

The payment shall be seen for as made to person wise and not as property wise. Therefore you are required to deduct the tax at source provided your total payment excedds Rs 180000/- p.a. Section 194I defines the different class of properties for the sake of rate of TDS only

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 18 June 2014

anant is correct. tds limit is to be checked person wise and not category wise. so if 210000 is being paid to a single person then tds is reqd. to be deducted.

NILA REJESH P (Chartered Accountant) (815 Points)
Replied 19 June 2014

TDS on Gross rent.

Siddharth (Article Assistant) (111 Points)
Replied 19 June 2014

TDS should be deducted on thew value excluding service tax

Tarun Garg (Business) (22 Points)
Replied 22 June 2014

If rent is paid 300000rs. To 2 persons x and y.150000rs. Each. Than tds will be deducted for that ?

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(Guest)

Any person, other than an individual or a HUF, is responsible for paying to resident in India, any income by way of the rent, amounting in aggregate to more than Rs. 180000 in a financial year. However w.e.f. 01/06/2002, individuals and HUF who were covered under section 44AB (a) and (b) in the preceding previous year, are also required to deduct tax at source.