Can any 1 suggest whether I have to deduct TDS U/s 194i For rent paid to Mr.A of Rs.1,10,000/- for building and Rs. 90,000/- for machinery ? TDS is applicable or Not ?
If applicable send me any notification and if not then suggest any judicial decision on it
The rates of tds are 2% on Plant and Machinery
The rates of tds are 10% on Building
Since you are paying Rs. 110000 Building & Rs. 90000 Machinery
Now the words of the section are :
Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed90[one hundred and eighty thousand rupees]
[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section.]
Based on above,
1. ) If you were not liable to tax audit in preceeding previous year then no need to deduct TDS.
2. ) The limit is to be considered on aggregate of such payments so you have exceeded limit of 180000. - Hence you need to deduct TDS.
I hope the above solves your query.
CAclubindia
