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Jun 13, 2024 · Section 194-I outlines the rules for TDS on rent for individuals earning rental income. It covers aspects such as threshold limits, reasons for introduction, conditions for TDS deduction, meaning of 'rent', rates of TDS, and exemptions.
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.
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.
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 6, 2021 · TDS is to be deducted even if rent paid exceeds Rs.50,000 for only one month in a year. Example-Rent paid from April 2021 to January 2022 is Rs. 45,000 per month. Rent paid for February and March 2022 is Rs. 55,000 per month.
An informed and in-depth blog focusing on every aspect of TDS on rent. It covers everything from how much TDS on rent is deducted, to how to pay TDS on rent.
Feb 15, 2020 · TDS on rent must be deducted by any person, other than an individual or HUF, making a payment of rent to any resident, if the total rent paid in a year is over Rs.1,80,000. Individuals and Hindu Undivided family, who are covered in Section 44AB (Section 44AB deals with tax audit) are also required to deduct TDS on rent.
Oct 24, 2023 · 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.
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.
The TDS rent rate for Section 194I is set to 10% by default for rentals based on land and furnishings. For rent exclusively on buildings or on land, the rate is 5%. A TDS of 2% is applicable for the rent of industrial plants and machinery.
