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What is the TDs threshold for deduction of tax on rent?
What is tax deduction at Source (TDS) on rent payments?
When is TDs on rent applicable?
What is TDs on rent under section 194i?
Jul 4, 2024 · 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). Also, individuals and/or HUFs who are subject to tax audit are under an obligation to deduct the tax at source.
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.
- TDS Rates in India. The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India.
- TDS Rate Charts for the FY 2023-24. Section. Deductee* Nature of transaction. Threshold Limit (Rs) TDS Rate. 192. R, NR. Payment of salary. Basic exemption limit of employee.
- Union Budget 2023 New TDS Provisions. Section 194BA – TDS on online gaming. Starting from April 1, 2023, TDS will be deducted on income earned from online gaming.
- Overview of TDS Rate Chart for the FY 2023-24. Section. Nature of transaction. TDS Rate. 192. Payment of salary. Normal Slab Rates. 192A. Premature withdrawal from EPF.
Aug 23, 2024 · Section 194-I requires any person, excluding specific individuals or HUFs, to deduct TDS when the annual rent paid exceeds ₹2,40,000. For individuals or HUFs not covered under 194-I, Section 194-IB applies if the monthly rent exceeds ₹50,000.
- What is the meaning of ‘rent’ according to Section 194-I of Income Tax Act, 1961? ‘Rent’ means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of either separately or together any:-
- What Payment is Covered u/s 194I? Rent includes service charges: – Service charges payable to business Centre’s are covered under the definition of rent, as they cover payments by whatever named called.
- Who is responsible to deduct tax u/s 194I? The person (not being an Individual or HUF) who is responsible for paying any income to a resident by way of rent is liable to deduct tax at source.
- When to Deduct TDS under Section 194I? Tax is required to be deducted at source at the time of credit of ‘income by way of rent’ to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.
Based on Section 194I of the Income Tax Act, a person is eligible for a TDS deduction if they will be paying their landlord a total of Rs 1.80 lakhs in rent in a financial year and have already debited that amount or are likely to do so. Note that neither a person nor a HUF may be the subject of this sentence. Rate of 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.
