Section 194I was inserted vide the Finance Act, 1994. 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. What is the meaning of Rent?
- Q.4. At what rate tax to be deducted u/s 194I?
- Q.5. Under what circumstances there is no need to deduct TDS u/s 194I?
- Q.6. Whether a contract for putting up a hoarding would be covered under section 194C or 194-I of the Act?
- Q.7. Whether payments made to a hotel for rooms hired during the year would be of the nature of rent?
- Q.8. Whether the rent paid should be enhanced for notional income in respect of deposit given to the landlord?
- Q.9. Whether payments made by company taking premises on rent but styling the agreement as a business centre agreement would attract the provisions of section 194-I?
- Q.10. Whether in a case of a composite arrangement for user of premises and provision of manpower for which consideration is paid as a specified percentage of turnover, section 194-I of the Act would be attracted?
- Q.11. Whether tax is required to be deducted at source where a non refundable deposit has been made by the tenant?
- Q.12. Whether the tax is to be deducted at source from warehousing charges?
- Q.13. On what amount the tax is to be deducted at source if the rentals include municipal tax, ground rent, etc.?
- Q.14. Whether section 194-I is applicable to rent paid for the use of only a part or a portion of any land or building?
- Q.15. Where accommodation in hotel rooms taken on regular basis whether tax is deductible u/s 194C or 194I?
- Q.16.How he can take credit of TDS deducted on advance rent?
- Q.17.Whether provisions of S. 194I shall apply in a situation where payment is made for hotel accommodation by an employee or an individual representing a company?
- Q.18. Whether provisions of S. 194 I shall apply to proceeds of film exhibition?
- Q.19. Whether TDS u/s 194 I deductible on gross amount inclusive of service tax?
- Q.20. Whether holding company is liable to deduct TDS on rent in respect of premises shared with its subsidiary?
- Q.21. Whether TDS u/s 194 I on payments in respect of entitlement rights of assured supply of railway rakes?
- Q.22. Where there are several co – owners whether threshold limit of Rs. 2,40,000/- shall be taken in to consideration in respect of each co-owner separately?
- Q.23. Whether the tenant / assessee can be held as assessee in default, where the landlord duly paid the short deduction of TDS along with interest?
- Q.24. Whether TDS on Landing and parking charges is deductible u/s 194C or 194I?
- Q.25. Whether provisions of S. 194I shall apply to non refundable security deposit?
- Q.26. Where only land and warehouse are used and no other ser-vices are provided – Whether tax deductible u/s 194C or 194I?
- Q.27. Whether TDS u/s 194I is deductible on upfront fee?
- Q.28. Whether fee for infrastructure partakes the character of Rent for the purpose of deduction of tax u/s 194I?
- Q.29. Where rent paid to Co – owners separately will partake the character of rent paid to AOP?
- Q.30. Whether TDS u/s 194I applies to premium payable for lease?
- Q.31. Whether hiring of storage tanks qualified either as land and building or hire charges?
- Q.32. Whether provision of S. 194I shall attract where C&F agent provides other services in addition to storage?
- EXTRACT OF SECTION 194-I OF THE INCOME TAX ACT, 1961
Q.1 Who is liable to deduct TDS on Rent under Section 194I of Income tax Act, 1961?
A.1. Any person, other than an individual or a HUF, is responsible for paying to resident in India, any income by way of the rent, amounting in aggregate to more than Rs. 2,40,000 in a financial year.
However, individuals and HUF who were covered under section 44AB(a) and (b) in the preceding previous year i.e. whose gross turnover/receipts of the business/profession in the immediately preceding financial year exceeded business/profession in the immediately preceding financial year exceed Rs. 1,00,00,000 / 50,00,000, as the case may be, are also required to deduct tax at source if they are paying rent to resident in India amounting in aggregate to more than Rs. 2,40,000 in a financial year.
Q.2. What is the point of deduction of TDS u/s 194I?
A.2. Tax should be deducted either at the time of actual payment of rent or at the time of its credit to the account of the payee whichever is earlier.
Q.3. What is the meaning of Rent?
A.3. Clause (c.)of Explanation to section 194I specifies the meaning of “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, –
(a) Land; or
(b) Building (including factory building); or
(c.) land appurtenant to a building (including factory building); or
(d) Machinery; or
(e) Plant; or
(f) Equipment; or
(g) Furniture; or
(h) Fittings,
Whether or not any or all of the above are owned by the payee.
Q.4. At what rate tax to be deducted u/s 194I?
A.4. The rates of TDS in case of rent shall be as under:
| Nature of payment – Rent (194I) | ||
| (a) | Rent of Plant Machinery or equipment | 2% |
| (b) | Renting of land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings | 10% |
| (c) | If PAN is not quoted | 20% |
Q.5. Under what circumstances there is no need to deduct TDS u/s 194I?
A.5. There is no need to deduct TDS u/s 194I under below mentioned circumstances:
- The aggregate amount paid / payable during the Financial Year doesn’t exceed the threshold exemption limit i.e. doesn’t exceed INR 2,40,000.
- The payer / tenant is an individual or HUF who is not liable to tax audit as per section 44 (AB) clause (a) or (b).
- Rent is paid / payable to a Government agency.
- Where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust
- In case, where payee applied in Form 13 to AO for non deduction, being his taxable income including rent below taxable limit, and has obtained certificate thereof.
Q.6. Whether a contract for putting up a hoarding would be covered under section 194C or 194-I of the Act?
A.6. The contract for putting up a hoarding is in the nature of advertising contract and provisions of section 194C would be applicable. It may, however, be clarified that if a person has taken a particular space on rent and thereafter sub lets the same fully or in part for putting up a hoarding, he would be liable to TDS under section 194-I and not under section 1 94C of the Act. Circular: No. 715, dated 8-8-1995. See also ITO v Roshan Publicity Pvt. Ltd. (2005) 4 SOT 105 (Mum).
Q.7. Whether payments made to a hotel for rooms hired during the year would be of the nature of rent?
A.7. Payments made by persons, other individuals and HUFs for hotel accommodation taken on regular basis will be in the nature of rent subject to TDS under section 194-I. Circular: No. 715, dated 8-8-1995.
Q.8. Whether the rent paid should be enhanced for notional income in respect of deposit given to the landlord?
A.8. The tax is to be deducted from actual payment and there is no need of computing notional income in respect of a deposit given to the landlord. If the deposit is adjustable against future rent, the deposit is in the nature of advance rent subject to TDS. Circular: No. 715, dated 8-8-1995.
Q.9. Whether payments made by company taking premises on rent but styling the agreement as a business centre agreement would attract the provisions of section 194-I?
A.9. The tax is to be deducted from rent paid, by whatever name called, for hire of a property. The incidence of deduction of tax at source does not depend upon the nomenclature, but on the content of the agreement as mentioned in clause (i) of Explanation to section 194-I. Circular: No. 715, dated 8-8-1995.
Q.10. Whether in a case of a composite arrangement for user of premises and provision of manpower for which consideration is paid as a specified percentage of turnover, section 194-I of the Act would be attracted?
A.10. If the composite arrangement is in essence the agreement for taking premises on rent, the tax will be deducted under section 194-I from payments thereof. Circular: No. 715, dated 8-8-1995.
Q.11. Whether tax is required to be deducted at source where a non refundable deposit has been made by the tenant?
A.11. In cases where the tenant makes a non-refundable deposit tax would have to be deducted at source as such deposit represents the consideration for the use of the land or the building, etc., and, therefore, partakes of the nature of rent as defined in section 194-I. If, however, the deposit is refundable, no tax would be deductible at source. It is further clarified that if the deposit carries interest, the tax to be deducted on the amount of interest will be governed by section 1 94A of the Income-tax Act. Circular: No. 718, dated 22-8-1995
Q.12. Whether the tax is to be deducted at source from warehousing charges?
A.12.The term ‘rent’ as defined in Explanation (i) below section 194-I means any payment by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any building or land. Therefore, the warehousing charges will be subject to deduction of tax under section 194-I. Circular: No. 718, dated 22-8-1995
Q.13. On what amount the tax is to be deducted at source if the rentals include municipal tax, ground rent, etc.?
A.13.The basis of tax deduction at source under section 194-I is “income by way of rent”. Rent has been defined, in the Explanation (i) of section 194-I, to mean any payment under any lease, tenancy, agreement, etc., for the use of any land or building. Thus, if the municipal taxes, ground rent, etc., are borne by the tenant, no tax will be deducted on such sum. Circular: No. 718, dated 22-8-1995
Q.14. Whether section 194-I is applicable to rent paid for the use of only a part or a portion of any land or building?
A.14. Yes, the definition of the term “any land” or “any building” would include a part or a portion of such land or building. Circular: No. 718, dated 22-8-1995
Q.15. Where accommodation in hotel rooms taken on regular basis whether tax is deductible u/s 194C or 194I?
A.15. Where earmarked rooms are let out for a specified rate and specified period, they would be construed to be accommodation made available on ‘regular bases. Similar would be the case, where a room or set of rooms are not earmarked, but the hotel has a legal obligation to provide such types of rooms during the currency of the agreement. However, where an agreement is merely in the nature of a rate contract, it cannot be said to be accommodation ‘taken on regular basis’, as there is no obligation on the part of the hotel to provide a room or specified set of rooms. The occupancy in such cases would be occasional or casual. In other words, a rate-contract is different for this reason from other agreements, where rooms are taken on regular basis. Consequently, the provisions of section 194-I while applying to hotel accommodation taken on regular basis would not apply to rate contract agreements. Please refer Circular: No. 5/2002, dated 30-7-2002.
Q.16.How he can take credit of TDS deducted on advance rent?
A.16. Where advance rent is spread over more than one financial year and tax is deducted thereon, credit shall be allowed in the same proportion in which such income is offered for taxation for different assessment years. However where rent agreement gets terminated/cancelled resulting into refund of balance amount of advance rent to the tenant. Or the rented property is transferred, credit for the entire balance of tax deducted at source, which has not been given credit so far, shall be allowed in the assessment year relevant to the financial year during which the rent agreement gets terminated/cancelled or rented property is transferred and balance of advance rent is refunded to the transferee or the tenant, as the case may be. Please refer Circular : No. 5/2001, dated 2-3-2001.
Q.17.Whether provisions of S. 194I shall apply in a situation where payment is made for hotel accommodation by an employee or an individual representing a company?
A.17. Where an employee or an individual representing a company (like a consultant, auditor, etc.) makes a payment for hotel accommodation directly to the hotel as and when he stays there, the question of tax deduction at source would not normally arise (except where he is covered under section 44AB as mentioned above) since it is the employee or such individual who makes the payment and the company merely reimburses the expenditure. Circular: No. 5/2002, dated 30-7- 2002.
Q.18. Whether provisions of S. 194 I shall apply to proceeds of film exhibition?
A.18. Provisions of section 194-I are not attracted to proceeds of film exhibition, since :
(i) The exhibitor does not let out the cinema hall to the distributor;
(ii) Generally, the share of the exhibitor is on account of composite services; and
(iii) The distributor does not take cinema building on lease or sublease or tenancy or under any agreement of similar nature.
Please refer – Circular : No. 736, dated 13-2-1996.
Q.19. Whether TDS u/s 194 I deductible on gross amount inclusive of service tax?
A.19. Service tax paid by the tenant doesn’t partake the nature of “income” of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax. Please refer CIRCULAR NO. 4/2008, DATED 28-4-2008
A.20. Where holding company of assessee took a premise on rent and allowed assessee to use a part of it, and there was no relationship of lessor and lessee between them, assessee had no TDS obligation under section 194- I while reimbursing a part of rent to holding company. Please refer ACIT v. Result Services (P.) Ltd. [2012] 23 taxmann.com 93 (Delhi)
Q.21. Whether TDS u/s 194 I on payments in respect of entitlement rights of assured supply of railway rakes?
A.21. Seconding entitlement rights of assured supply of railway rakes and receiving charges for same is not rent as defined in section 194-I and, therefore, there would be no TDS obligation. Bonai Industrial Co. Ltd. v. Dy.CIT, [2012] 24 taxmann.com 158 (Cuttack – Trib.)
Q.22. Where there are several co – owners whether threshold limit of Rs. 2,40,000/- shall be taken in to consideration in respect of each co-owner separately?
A.22. Where property in question leased out to a bank was owned by various co-owners and each owner was having a definite and ascertainable share in property, threshold limit for purpose of deduction of tax at source under section 194-I would apply to each of co-owners separately. CIT v. Senior Manager, SBI*[2012] 20 taxmann.com 40 (All.) see also CIT v. Manager, State Bank of India[2009] 226 CTR 310 (RAJ.), Amalendu Sahoo V ITO (2003) 264 ITR 16 (Cal), Orient Bank of Commerce V TDS / TRO (2006) 99 TTJ 1235 (Chd).
Q.23. Whether the tenant / assessee can be held as assessee in default, where the landlord duly paid the short deduction of TDS along with interest?
A.23. Once landlord paid amount of short deduction of TDS with interest on amount of rent, tenant/assessee could not be construed as an assesseein-default. CIT v. Sony India (P.) Ltd.* [2012] 17 taxmann.com 126 (Kar.)
Q.24. Whether TDS on Landing and parking charges is deductible u/s 194C or 194I?
A.24. Landing and parking charges paid by assessee-airlines to Airport Authority of India were ‘rent’ within meaning of provisions of section 194-I as those were payments made for use of land of airport. CIT v. Japan Airlines Co. Ltd. [2010] 325 ITR 298 (Delhi) see also CIT v Asiana Airlines (2008) 175 Taxman 177 (Del, United Airlines V CIT (2006) 287 ITR 281 (Del), however Chennai high court has given an adverse opinion in Singapore Airlines Ltd. V ITO (2006) 7 SOT 84 (Chennai).
Q.25. Whether provisions of S. 194I shall apply to non refundable security deposit?
A.25. Amount paid as security deposit under terms of lease agreement which was not refundable at the time of termination of lease. It could be said that said amount was in fact advance rent and as such, assessee was required to deduct tax at source from payment of such advance rent under section 194-I. Please refer CIT* v. Reebok India Co. [2007] 291 ITR 455 (Delhi)
Q.26. Where only land and warehouse are used and no other ser-vices are provided – Whether tax deductible u/s 194C or 194I?
A.26. Where only land and warehouse are used and no other ser-vices are provided, payment made is rent subject to deduction of tax at source under section 194-I of IT Act. Hindustan Coca-Cola Bev. (P.) Ltd. v. CIT [2004] 141 Taxman 60 (Delhi)
Q.27. Whether TDS u/s 194I is deductible on upfront fee?
A.27. Where the lessee paid an upfront fee against license fee for a lease covering a period of 30 years, tax is deductible at source even on such upfront fee as rent under section 194I. Please refer TRO v Bharat Hotels Ltd. (2009) 318 ITR (AT) 244(Bom)].
Q.28. Whether fee for infrastructure partakes the character of Rent for the purpose of deduction of tax u/s 194I?
A.28. where fees collected from students were shared by assessee and it franchisees and the assessee for the purpose of its convenience, had categorized said fees shared as marketing claim and infrastructure claim. No tax is deductible on infrastructure claim u/s 194I. Please refer [CIT v NIIT Ltd. (2009) 184 Taxman 472 (Del) see also ACIT v Nib Ltd. (2008) SOT 44 (Del) (URO).
Q.29. Where rent paid to Co – owners separately will partake the character of rent paid to AOP?
A.29. No, please refer [CIT v Lally Motors (2009) 311 ITR 29 (P&H)].
A.30. The definition of rent includes any payment by whatever name called [(CIT v Panbari Tea Co. Ltd. (1965) 57 ITR 422 (SC)]
Q.31. Whether hiring of storage tanks qualified either as land and building or hire charges?
A.31. The storage tanks in question did not qualify either as land or as building within the meaning of section 194I, what is attached to the land belongs to the land is a principle not applicable to India. Therefore, the structure though erected on land, could not be regarded as part of the land. Please refer [Gulf Oil India Ltd. V ITO (2000) 75 ITD 172 (Mum)].
Q.32. Whether provision of S. 194I shall attract where C&F agent provides other services in addition to storage?
A.32. Where the terms & conditions of the agreement are such that, to reveal that the agent not only stored the goods but also rendered certain other professional services like inventory management, packing, follow up, collection, maintaining banks account of the sale proceeds, under these circumstances it could not be said that the payment made by the assessee to them was in the nature of rent. Please refer [Eli Lilly & Co. (India) (P) Ltd. V DCIT (2006) 99 TTJ 461 (Del)].
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TDS on Salary – Section 192 – FAQ & Important Circulars
FAQs on TDS on Contracts U/s. 194C of Income Tax Act, 1961
Section 194H – TDS from Commission and Brokerage – FAQs
FAQs on TDS on Rent Under Section 194-I of Income tax Act, 1961
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EXTRACT OF SECTION 194-I OF THE INCOME TAX ACT, 1961
TDS ON RENT
“194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income 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, deduct income-tax thereon at the rate of—
(a) two per cent for the use of any machinery or plant or equipment; and
(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:
Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed 45[two hundred and forty thousand rupees] :
Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section :
Provided also that no deduction shall be made under this section where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust.
Explanation.—For the purposes of this section,—
(i) “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,—
(a) land; or
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); or
(d) machinery; or
(e) plant; or
(f) equipment; or
(g) furniture; or
(h) fittings,
whether or not any or all of the above are owned by the payee;
(ii) where any income is credited to any account, whether called “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.”
(Source – Book on Practical Aspects of Tax Audit, TDS, HUF & Capital Gains written by CA Agarwal Sanjay ‘Voice of CA’ & Team)
Republished with Amendments
for hall booking, if Service Provide by Hall owner then which section 194I/194C is applicable ? why? what is rate of tds?
should TDS be deducted u/s 194-I for reimbursement of diesel expenses for hired trucks under an agreement and under which section TDS on reimbursement of toll tax be deducted i.e. 194-C or 194-I
We have agreement with landlord for Venue rental & also we have another contract agreement with same landlord for Hostel payment. Now we are deducting TDS 10% for venue rent payment U/S 194I. Please suggest will we also need to deduct TDS from Hostel payment, If yes what will be the Rate of deduction.
Sir
Both Section 194 I and 194 I B talk about TDS from rent interms of Individual and HUF
What about company lease accomodation does company need to deduct TDS from rent paid to landloard ? and howmuch ?
How can company come under Any Individual paying rent …. ?
Why I Tax act does not mention Indiviual / Company ? and remove the confusion ?
Sir, i have some problem
Case 1 : sir i am pay the rent 30,000 p.m but there are two parties who can share the rent equally so i can cut the TDS on Rent or not ?
IF U R PAYING RENT AS OTHER THAN INDIVIDUAL OR HUF THEN UR LIABLE TO DEDUCT TDS
NOT APPLICABLE
if u r paying rent as individual or HUF no need to deduct TDS
Very Nice article.
My tennat has paid advance rent which s spread over three FY and deposited the entire TDS in the first year itself when he paid the rent. In the IT return filed I have consided the propotionate amount of rent and TDS for that particular financial year. IT has not considered this and has sent me a demand notice for the shortfall in TDS amout along with interest. This is not due to me actually because the amount of shortfall in TDS is actually paid in the previous FY and is reflecting in my form 26AS of that FY. What is the best way to rectify this error.
If rent paid for plant and machinery is 30,000 & for building is 1.6L then Tds to be deducted at what rate??? 10% for entire 1.9L or 1% for 30k n for rest 10%?
i am paying rent to landlord so plz tell me who is laible to pay TDS. my landloard is also taking TDS 10% from me..IS it correct format of tDS?
If the property is under litigation. No rent is paid to Landlord.However, a provision is made in the book of accounts for the rent for 5 years together that amounts to Rs 5 crore. whether TDS is supposed to be deducted on this type of provision in the books of account.Court verdict is awaited
dear sir
can i deduct tds on bill of generator services service provider company put the sum parts in generator but they have not charges any tax in this bill.
sir what i do deducted tds or not
Thanking you
Akhil Chauhan
TCIL Chandigarh
Dear Sir
If a mobile tower is installed/fixed on a roof top,should this be considered as plant & machinery for TDS pupose,rate will be 2%?
Dear Sir I got generator on rent @ 50000/- per month how much t d s to be deducted at what rate i deduct T D S from party
dear sir, my friend is going to take a kalyanamandapam on lease for 5 years.
what are the points we keep in mind especially TDS and service tax ( he is a sole propreitor or a firm)
please help us
thanking you
G.IRUDAYARAJ
Sir,
We have hired laptops from different different suppliers & the suppliers are charging CST/VAT on the monthly hire Charges.
Is there any TDS liability on my company or not?
Dear Sir,
we are paying composite rent of factory which includes Land, Building & Plant & Machinery etc. @ Rs. 2.50 Lacs per month. At what rate the TDS should be deducted? Rent of individual Land, Building & Plant & Machinery is not specified in the agreement
Sir,
I have paid Rs. 5.00 Lakh to our Handling Agent towards issuance of debit note for paying of Rs.5.00 lakh to Haldia Port on behalf of my companies towards plot rent ( Already paid by Agent ). Is there any liability upon my companies for deduction of TDS U/s. 194I.
Pls. Suggest Me As early as possible.
sir,if had paid rent Rs.1,80,000/-,then i am liable to deduct TDS on rent paid.Please reply me as soon as possible.
sir,if had paid rent Rs.1,80,000/-,then i am liable to deduct TDS on rent paid.Please reply me as soon as possible
If Rs. 504000/ total rent paid by the partnership firm to three coowners with all three owners Rs. 168000/ by different cheque to all co owners , whether the TDS under sec 194 is applicable
jayant m shah says:
Your comment is awaiting moderation.
02/13/2015 at 1:46 PM
jayant m shah says:
Your comment is awaiting moderation.
02/13/2015 at 1:37 PM
Dear Sir,
Our bank is having rented branch premises.because of owner having dispute in their family bank has not paid the rent to the owner. now it bis decided to pay them the provided ren.we therefore required to have details of t.d.s. % and surcharge if any on the rent amount per year from 1998 to 2015. please give details.
j.m.shah
– See more at: https://taxguru.in/income-tax/faqs-tds-rent-section-194i-income-tax-act-1961.html#comment-1537205
jayant m shah says:
Your comment is awaiting moderation.
02/13/2015 at 1:37 PM
Dear Sir,
Our bank is having rented branch premises.because of owner having dispute in their family bank has not paid the rent to the owner. now it bis decided to pay them the provided ren.we therefore required to have details of t.d.s. % and surcharge if any on the rent amount per year from 1998 to 2015. please give details.
j.m.shah
– See more at: https://taxguru.in/income-tax/faqs-tds-rent-section-194i-income-tax-act-1961.html#comment-1537205
Dear Sir,
Our bank is having rented branch premises.because of owner having dispute in their family bank has not paid the rent to the owner. now it bis decided to pay them the provided ren.we therefore required to have details of t.d.s. % and surcharge if any on the rent amount per year from 1998 to 2015. please give details.
j.m.shah
Sir, sec 194-I having two rates 2% (plant and machinery) and 10%(other than p and M). why that seggregation.on what purpose tds 2% on Plant and machinery.
Dear sir, I wish to know that if we arrange a function in our office premises and taken light fittings and mike on rent for one day only.
for that case in which tds section applicable for vendors bill.
194C OR 194I.
THANKS
Dear Sir,
My rent payment is more than 1,80,000 p.a. Owner charges interest if the payment made late. In this case can I deduct the Tds on Interest?
Hi,
Please confirm to deduct TDS u/s 194 I on rent income, though the landlord is foreign citizen
Dear Sir,
In case a company reimburses its C& F agent for the additional warehouse space used by it during the year. Will the reimbursement made to the agent be subject to TDS even if the TDS is taken care by the C&F agent while making payment to the warehouse’s owner.
Regards
SIR,
WE HIRED WATER TANKER ON PER DAY BASIS , IS IT ATTRACT SECTION 194I OR 194C?
My House let out to a Company for companies staff staying. Total rent is Rs. 18,000 pm. Company wants to deduct TDS @ 10%. However in my agreement with company it is clearly stated that Rs.13,000 will be rent & balance Rs. 5,000 by means of Service Charges. Please let me know my tenant can deduct TDS on entire amount. –
My House let out to a Company for companies staff staying. Total rent is Rs. 18,000 pm. Company wants to deduct TDS @ 10%. However in my agreement with company it is clearly stated that Rs.13,000 will be rent & balance Rs. 5,000 by means of Service Charges. Please let me know my tenant can deduct TDS on entire amount.
Dear sir,
I am Indrajit patil. I am working at Construction company. when i am booking lease bill of Machinary(6 month). But supplier on his bill VAT including. If on that bill whether TDS & Service Tax is applicable OR VAT is applicable. Please send our answer on mail id.
One of our client is liable to deduct TDS in AY 15-16 as he was under Tax Audit in AY 14-15.In Ay 15-16 he is paying rent exceeding Rs 1,80,000 which he will be claiming deduction as HRA from Salaries.So is he liable to deduct Tds on such rent which he ‘ll be claiming as HRA ?
Dear Sir,/ Mam,
We are having agreement with party per month rent 50000/- the rent to be paid 4:3:3 to Land lords 20000,20000,10000
Is the TDS is applicable third party who is not crossing limit
Sir/Madam, I need some clarification regarding collecting rent (1 Office at Commercial complex) with Building maintenance charges(Collected and handover to the builder to whole amount), water tax and electricity charges(as per EB bill used by the tenant only) Other than rent what ever we collected from the tenant only which we paid to respective persons/department. This for only service no extra income for that charges. we are collecting and paying that charges according to the bills raised by others/departments on behalf of our tenant.
My question is Is TDS is applicable for rent only or including maintenance, water tax and electricity bill.
Kindly explain the example for Rent=25000, Maintenance = 1000 (Hand over to the builders), Water Tax=500 (To Government) and EB=2000(To ELECTRICITY BOARD).
Thank you,
Chandrasekaran
My friend has given his house on rent to an individual and would be receiving
Rs.3,00,000 for the year ending 31.3.15. The tenant wants to deduct TDS @10% on entire rent Please clarify whether TDS is applicable on entire sum or only on the excess i.e.,300,000 – 180,000 = 120,000 rent ? My friend is a senior citizen and his total income including the above rent does not exceed the existing ceiling of Rs.3 lacs.
Please clarify by e mail to [email protected].
Thanks.
i have given my house to a psu working empoloyee @16000 pm i.e. Rs. 192000 per year. so tax deduction will be on excess of 180000 or the entire amount?
what if i would have given on rent at 180000 per annum?
I have given my house on rent Rs.11,000/- p.m & Rs.11,000/- maintenance p.m. I would like to know whether TDS is applicable on entire sum or only on the rent amount.
I have given my house on rent to a COMPANY and about to receive
Rs.1,95,000/-for the year ending 31.3.15. They want to deduct TDS @10% on ENTIRE rent Please clarify whether TDS is applicable on entire sum or only on the excess i.e.,195000 – 180000/- 15,000/- rent ? I am a senior citizen and my total income including the above rent DOES NOT EXCEED THE PRESENT LIMIT OF RS.3 LAKHS IN CURRENT YEAR.
Any amendment to this in current year budget ? Please clarify by to my e mail: [email protected] at your earliest.
Please let me that if refundable deposit is adjsted against the rent payable than it is required to deduct TDS or not.
Dear Sir,
I have some query on reimbursement of expenses as follows:
Case: Our Company(XYZ Ltd.) has C & F agent who incurs expenditure(lodging & fooding) of Rs. 5,00,000 on various conferences(which held in a hotel for 5 days). The C & F agent makes payment to the hotel and later he takes reimbursement from the Company. So whether TDS provision gets applied in this case?
Dear Sirs, I wish to know whether the tenant and the owner of the building who shell out some service charges to a real estate agent can deduct such payments from income from house property in the (owner uses ITR-2) in the case of owner and tenant (any other form)