section 194I

TDS Rate Chart for FY 2022-23 / AY 2023-24 – Updated

Income Tax - Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. […]...

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Annual Information Statement – Rent received

Income Tax - In the present article we will briefly take up the Annual Information Statement covering the Rent received category. AIS information category – Rent received- The broad categories of information covered in AIS is divided into 50 categories. One such category is ‘Rent received’. Notably, the information under the category of ‘Rent ...

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Section 194I TDS on Rent – Analysis

Income Tax - 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....

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TDS : Some Other Issues

Income Tax - Even after reading major sections related with TDS in detail there are some matter which needs further consideration. Some of them are discussed hereunder:- Person deducting Tax at source under section 194B has been made liable : TO PAY TAX TO THE CREDIT OF THE CENTRAL GOVERNMENT – As per rule 30 of the Income-tax […]...

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TDS on Landing and parking charges payable to AAI

Income Tax - Landing and parking charges payable by airlines to Airport Authority of India (AAI) in respect of aircraft are subject to section 194C but not subject to section 194-I, as per the decision of the Hon’ble Supreme Court. In this article, I’m going to discuss whether landing and parking charges payable by airlines to AAI are [&he...

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Section 194-I: Increase TDS on rental income exemption limit of Rs. 1,80,000

Income Tax - As per the provisions of section 194-I, the tax is to be deducted at source @10% in respect of income by the way of rent for any use of land or building or furniture or fixture etc....

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Section 194IA is qua each transferee and not qua aggregate consideration

Shamim Irshad Vs ITO (ITAT Delhi) - Section 194A provision provides that obligation cast under Section 194IA is qua each transferee and not qua aggregate consideration. ...

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Discount cannot be equated with Rent to attract TDS under Section 194I

PCIT Vs Asian Mills Pvt. Ltd. (Gujarat High Court) - PCIT Vs Asian Mills Pvt. Ltd. (Gujarat High Court) The assessee gave additional discount to parties on account of godown rent paid by the said parties. According to the assessee, the customers did not take the delivery of the goods in their own godown after the purchase and the goods would continue ...

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Amendment to Section 40(a)(ia) restricting disallowance to 30% is retrospective

Punabhai G. Pardava Vs ITO (ITAT Rajkot) - Punabhai G. Pardava Vs ITO (ITAT Rajkot) Assessee contended that the disallowance should be restricted to the tune of 30% of the rent paid under the provisions of section 40(a)(ia) read with section 194-I of Income Tax Act. The amendment was brought by the Finance Act (No. 2) 2014 effective from 1-4...

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Car hiring charges – TDS under Section 194I Or Section 194C?

Akshatam Construction LLP Vs DCIT (ITAT Ahmedabad) - IF car is hired not to perform specific services and charges are not paid on the basis of specific uses but the same is hired for availability of car for particular time or period without specification of particular services and charges paid on fixed basis then such hiring should be considered as re...

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Section 194I TDS cannot be deducted in Absence of Payment of Rent

CIT Vs Western Electricity Supply Company of Odisha Limited (WESCO) (Orissa High Court) - In absence of there being any payment of rent or even deemed rent by the Respondents to OPTCL there was no obligation under Section 194-I of the IT Act to deduct TDS from the wheeling charges paid to OPTCL....

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Section 194I not applicable on remittance of Passenger Service Fees: CBDT

Circular No. 21/2017-Income Tax - (12/06/2017) - A dispute arose on applicability of the provisions of section 194-I of the Act, on payment of Passenger Service Fees (PSF) by an Airline to an Airport Operator. The Honourable High Court of Bombay in CIT vs. Jet Airways (India) Ltd.' declined to admit the ground relating to applicability of provisio...

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TDS on lump sum lease premium paid for long term lease

Circular No. 35 of 2016-Income Tax - (13/10/2016) - The issue of whether or not TDS under section 194-I of the Act is applicable on 'lump sum lease premium' or 'one-time upfront lease charges" paid by an assessee for acquiring long-term leasehold rights for land or any other property has been examined by CBDT in view of representations received in th...

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No TDS on Payment to Tirupati Balaji Mandir U/s. 193 & 194A

Notification No. 81/2016-Income Tax - (09/09/2016) - Central Government hereby notifies that no deduction of tax shall be made from payments of the nature specified in section 193 or section 194A or section 194-I of the said Act to the Tirumala Tirupati Devasthanams, Tirupati, Andhra Pradesh....

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Deduction of Tax at source on Service Tax on professional and technical fees

F. No.275/73/2007-IT(B) - (30/06/2008) - Circular No. F. No.275/73/2007-IT(B) Service Tax component to be considered for deducting tax on any sum paid as professional and technical fees under section 194J The Central Board of Direct Taxes (CBDT) has clarified that the payments made under section 194I differ significantly from payments mad...

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Recent Posts in "section 194I"

Section 194IA is qua each transferee and not qua aggregate consideration

Shamim Irshad Vs ITO (ITAT Delhi)

Section 194A provision provides that obligation cast under Section 194IA is qua each transferee and not qua aggregate consideration. ...

Read More

Discount cannot be equated with Rent to attract TDS under Section 194I

PCIT Vs Asian Mills Pvt. Ltd. (Gujarat High Court)

PCIT Vs Asian Mills Pvt. Ltd. (Gujarat High Court) The assessee gave additional discount to parties on account of godown rent paid by the said parties. According to the assessee, the customers did not take the delivery of the goods in their own godown after the purchase and the goods would continue to be at […]...

Read More

Amendment to Section 40(a)(ia) restricting disallowance to 30% is retrospective

Punabhai G. Pardava Vs ITO (ITAT Rajkot)

Punabhai G. Pardava Vs ITO (ITAT Rajkot) Assessee contended that the disallowance should be restricted to the tune of 30% of the rent paid under the provisions of section 40(a)(ia) read with section 194-I of Income Tax Act. The amendment was brought by the Finance Act (No. 2) 2014 effective from 1-4-2015 whereas the year […]...

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TDS Rate Chart for FY 2022-23 / AY 2023-24 – Updated

Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. […]...

Read More
Posted Under: Income Tax | ,

Car hiring charges – TDS under Section 194I Or Section 194C?

Akshatam Construction LLP Vs DCIT (ITAT Ahmedabad)

IF car is hired not to perform specific services and charges are not paid on the basis of specific uses but the same is hired for availability of car for particular time or period without specification of particular services and charges paid on fixed basis then such hiring should be considered as rental contract under the provision of sec...

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Section 194I TDS cannot be deducted in Absence of Payment of Rent

CIT Vs Western Electricity Supply Company of Odisha Limited (WESCO) (Orissa High Court)

In absence of there being any payment of rent or even deemed rent by the Respondents to OPTCL there was no obligation under Section 194-I of the IT Act to deduct TDS from the wheeling charges paid to OPTCL....

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Leasing charges allowable as Revenue expense if lessee have no ownership right over leased asset

ThoughtWorks Technologies (India) Private Limited Vs DCIT (ITAT Bangalore)

ThoughtWorks Technologies (India) Private Limited Vs DCIT (ITAT Bangalore) As per clause 4 of the agreement between the assessee and the First Leasing (lessor) the asset shall remain the exclusive property of the lessor (First Leasing) at all times. It further provides that the lessee at no time during the lease period can capitalize the ...

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Annual Information Statement – Rent received

In the present article we will briefly take up the Annual Information Statement covering the Rent received category. AIS information category – Rent received- The broad categories of information covered in AIS is divided into 50 categories. One such category is ‘Rent received’. Notably, the information under the category of ‘Rent ...

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Posted Under: Income Tax |

No TDS on payment towards lease line charges under section 194I

AT&

TDS on payment towards lease line charge was liable to deduct under section 194J as against under section 194I as lease line services were standard automatic services which were availed by any telecom service provider for the transmission of data and was not under any exclusive arrangement....

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Section 194I TDS on Rent – Analysis

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....

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Posted Under: Income Tax |

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