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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.
Oct 24, 2018 · This section requires that every individual and HUF paying rent more than Rs. 50,000/- per month (or part of a month) for the use of any land or building or both, need to deduct TDS at the rate of 5%.
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.
May 6, 2024 · TDS on rent paid to NRIs. According to Section 195 of the Income Tax Act, the tenant should deduct TDS at the rate of 30% on rent paid to an NRI landlord for property located in India. For deducting TDS on the rent, the tenant should have a TAN.
Feb 29, 2024 · TDS on rent gets deducted from the person paying rent from the total payable rent amount. The deducted TDS on rent amount must be transferred to the Central Government account. TDS on rent is deductible only if the aggregate payable rent amount exceeds Rs.2,40,000 for the current financial year.
The Finance Act 1994 was the first to introduce TDS on Rent or Section 194I to India. It stated that any individual or Hindu undivided family member who received rent as income was liable to pay taxes to the Indian government. Any service fees collected by the business on top of rent are counted.
Jul 20, 2021 · Every individual paying monthly rent above Rs 50,000 to the landlord should deduct TDS on rent. This is specified under Section 194IB of the Income Tax Act. This section is also applicable to HUF, which pays rent above Rs 50,000 to a landlord.
