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Jul 4, 2024 · What is Section 194I? The person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct tax at source. TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2024-25 (the threshold limit was Rs. 1,80,000 until FY 2018-19).
Jan 16, 2024 · Section 194I of the income tax covers TDS on rent. It imposes an obligation for TDS deduction on persons (other than individual/HUF who are not subject to audit) making rental payments to resident Indians above a specified limit, i.e., Rs.2,40,000 in a year.
Jul 6, 2021 · TDS threshold for deduction of tax on rent is increased from ₹1,80,000 to ₹ 2,40,000 for FY2019-20. 4) When to Deduct TDS under Section 194I?
Jun 11, 2024 · TDS on Rent under Section 194I mandates non-individual and non-HUF payers to deduct tax at source when paying rent, with a threshold of Rs 2,40,000 for FY 2024-25. Individuals and HUFs under tax audit must also comply. Tax is deducted when rent income is credited or paid to the payee, whichever is earlier. Rate of TDS.
Jun 10, 2024 · Tax deduction at source (TDS) means collecting tax on income in the form of salary, rent, asset sales, dividends, etc., by requiring the payer to collect income tax due on such income while crediting/paying to the payee and deposit the same to the government on payee’s behalf.
Jul 26, 2019 · Threshold Exemption Limit for TDS on Rent under Section 194I. Section 194-I of the Income Tax Act, 1961 provides that no TDS would be deducted if the income credited / paid during the Financial Year does not exceed INR 2,40,000.
TDS on rent paid on plant, machinery, or equipment is to be charged at 2%. TDS on the rent paid on land, building, or both of it is to be charged at 10%. TDS on the rent paid on furniture or fitting is charged at 10%. Payments Covered Under Section 194I.
Oct 24, 2023 · Updated on 24 Oct, 2023. Reviewed by. Rinju Abraham. Fact checked by. Rinju Abraham. TDS on rent as per section 194I of the Income Tax Act, 1961 is applicable on rental income which the tenant pays to the owner. The tenant while paying the rent needs to deduct TDS on rent at the applicable rate.
Feb 29, 2024 · TDS on rent is deductible only if the aggregate payable rent amount exceeds Rs.2,40,000 for the current financial year. For example, a person has lent more than one property to another person. As per TDS on rent - Section 194IB, the limit still stands as per the annual rent amount of more than Rs.2,40,000.
May 7, 2024 · Tax deduction at source (TDS) on rental income is an important compliance factor under the Income Tax Act, which is specifically mentioned in Section 194I This section makes tax deduction at source mandatory from any income derived from the rental or lease of property.
