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TDS Applicable in Shop Rent

26 July 2020

₹ 50000/- per month rent is paid to the business extablishment . Whether the dealer collect TDS from Building Owner,what percentage is that?

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5 Replies

Sandeep shetty (Sr Accountant) (292 Points)
Replied 26 July 2020

Hi,

TDS on renting of Land and Building U/S 194I is 10%

As per recent amendment TDS rate from 14 May 2020 until 31 March 2021 for 194I is 7.5%

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Maryam Hasan Meem (Student) (448 Points)
Replied 26 July 2020

Under section 194I :
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%.

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Shivam RC (Student) (23683 Points)
Replied 26 July 2020

Under Section 194-I(b), TDS @ 10% is applicable in case of Rent of Land & Building, Furniture and Fixtures ( Rent for Immovable Property).

However a 25% relaxation have been given for certain Non-Salaried TDS Rates for the PY 2020-21 ( for the period 14th May 2020 to 31st March 2021). So effectively it will be 7.5%.

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