TDS u/s 194I applicable rate

Dear Sir

 

We have booked one rent invoice in March 2021, at that time TDS U/s 194I rate was 7.5% . But actual payment was done in May 2021. TDS rate u/s 194I revised w.e.f. 1-Apr-2022 to 10%. In this case should we deduct balance TDS 2.5% while making payment?

Replies (4)
Quick Summary
This discussion clarifies the applicable TDS rate under Section 194I for rent payments. If the rent invoice was booked in March 2021 when the rate was 7.5%, and the tax payment for FY 2020-21 (AY 2021-22) reflects this, then 7.5% is the correct rate, even if payment occurred in May 2021. The revised 10% rate applies from April 1, 2022. It's also noted that a 25% COVID-19 relaxation previously reduced TDS rates, making 7.5% the applicable rate during that period.

No. provided late fees for 3 months are paid..

If you have paid tax paid for FY-2020-21 & Tax challan has the FY-2020-21 ( AY-2021-22) then 7.5% is applicable.

10%

TDS rates- the TDS rate 10% in case of 194-I, and 5% for TDS under Section 194-IB. Exemption limit– the minimum exemption limit is Rs. 1.8 lakh per annum for section 194-I, and Rs. 50,000 per month for section 194-IB

During Covid , the govt has given relaxation of 25% on tds rates .So it's not 10% but it is 7.5%

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