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Jul 6, 2021 · 3) Rate of TDS under Section 194IB. Section 194-IB provides that tax at a rate of 5%(3.75% w.e.f. 14.05.2020 to 31.03.2021) should be deducted by the Tenant, Payer or Lessee at the time of making payment of rent to, Lesser, Landlord or Payee.
Section 194-IB of the Income Tax Act mandates TDS for rent exceeding Rs. 50,000 per month, covering various assets. Section 194-IC imposes TDS on rent paid under a Joint Development Agreement at 10%. Both sections specify the time and rate of TDS deductions, with penalties for non-compliance.
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.
Jan 16, 2024 · TDS to be deducted if the monthly rental payment exceeds Rs. 50,000. TDS to be deducted if the annual rental payment exceeds Rs. 2,40,000. Rate of TDS: 5% of the total rental amount. 10% of the total rental amount for land, building, or both used for commercial purposes. 2% for residential properties. Time of TDS Deduction
Jan 9, 2020 · The Rate to TDS to be deducted shall be 5%. If PAN of recipient is not available, tax is deductible at the rate of 20%. However, in such case amount of TDS cannot exceed rent payable for the last month of the previous year or last month of tenancy.
Feb 22, 2021 · Rate of TDS under section 194IB. The Individual or HUF who is liable to deduct TDS in terms of provisions of section 194-IB of the Income Tax Act, 1961 is required to deduct TDS @ 5%. It is important to mention here that in the absence of the PAN of the landlord, the tenant is liable to deduct TDS at the maximum marginal rate of 20%.
The rate of TDS for Section 194IB is 5% on land and buildings. The monetary limit for Section 194I is the rent of Rs. 2,40,000 for the financial year. The monetary limit of rent is Rs. 50,000 for a month.
