Under Section 194 IB, any individual paying rent exceeding Rs 50,000/- per month, has to deduct and deposit TDS @ 5% thru' Form 26QC.
My query is in 2 parts:
1) Does the tenant have to deduct TDS, if the rent is Exactly Rs 50,000/- per month? (The act says "exceeding Rs 50,000/-", but some experts have opined that rent at exactly Rs 50,000/- p.m. also will be liable for TDS)
2) If for 6 months of the FY, Rent is Rs 45,000/- p.m. (Rs 270,000/- for 6 months),
and, for the remaining 6 months it is Rs 51,000/-p.m. (Rs 306,000/- p.m.),
making a total of Rs 576,000/- for the year, would the tenant need to deduct and deposit TDS?
Appreciate guidance.
CAclubindia
