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Jul 4, 2024 · TDS for Rent - Section 194I of the Income Tax Act which refers to TDS deduction for rental income. Check out to understand its application and compliance to manage rental income.
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.
Jan 16, 2024 · Tax Deducted at Source (TDS) is applicable on rent payments exceeding a certain threshold. As per Section 194-I of the Income Tax Act, 1961, TDS on rent is applicable when the annual rent paid or payable exceeds Rs. 2,40,000.
2 days ago · 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.
1 day ago · Example 1: If a tenant has a rent agreement with a landlord of 11 months from September 2023 to July 2024, then the tenant can either deduct TDS on a monthly basis and deposit the same every month or deduct once from the March’s rental payment. The TDS will be deducted for the rent paid i.e. from September to March 2023.
What is TDS on Rent? According to Section 194I, an individual who pays rent is subject to tax deduction at the source. One must note that TDS can be deducted when the amount of tax to be paid or received in a given fiscal year is over Rs. 180000.
1 day ago · 2 Min Read. Finance Minister Nirmala Sitharaman on Tuesday, July 23, announced a reduction in the Tax Deducted at Source (TDS) on house rent payments. Effective October 1, 2024, the TDS rate will decrease from 5% to 2% for monthly rent payments exceeding ₹50,000. "As per provisions of section 194-IB, any person, being an individual or a Hindu ...
May 8, 2020 · The present article covers the important Frequently Asked Questioned regarding section 194-I of the Income Tax Act, 1961, which deals with the provisions of TDS on Rent. Page Contents. Q.1 Who is liable to deduct TDS on Rent under Section 194I of Income tax Act, 1961? Q.2. What is the point of deduction of TDS u/s 194I? Q.3.
Jul 6, 2021 · Any person, being an individual or a Hindu undivided family (not covered under section 194I), responsible for paying to a resident any income by way of rent exceeding ₹ 50,000 for a month or part of a month during the previous year, shall deduct income-tax thereon at the rates in force.
TDS on rent has to be deducted as per section 194I only when aggregate amount paid or to be paid or credited or to be credited exceeds Rs 1,80, 000 during the financial year. This means, tax should be deducted either at the time of payment or credit to the account of the payee, whichever is earlier.
