TDS on Rent – Section 194-I, Due Dates, Rates, Person who Liable
TDS on Rent: As per section 194 I of Income tax act 1961 ,TDS on rent has to be deducted where the aggregate amount paid or credited or likely to be paid or credited to the account of person receiving the rent exceeds Rs. 1,80,000 during the financial year. However, if you are a joint owner of a property then this limit will be applicable to every joint owner individually i.e. TDS on rent will be deducted only when the limit of Rs. 1,80,000 exceeded for each joint owner. Recently we also provide TDS Rate Chart , and How to Pay TDS Online Full Guide and Procedure. Now you can scroll down below and Check Complete Details for TDS on Rent
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- How to Pay TDS Online
- TDS Rate Chart
AMENDMENT IN SECTION 194-IB (TDS ON RENT)
According to section 194-IB any Individual or Hindu Undivided Family paying rent of Rs. 50,000 for a month or part of a month during the previous year, is responsible for TDS @5% on such income.
Due date of Payment
30 days from the end of month in which deduction is made
TDS on rent payable to Central Government is to be accompanied by a challan cum statement in Form 26QC. Certificate of TDS IN Form 16C is to be submitted to payee within 15 days from the due date of furnishing the challan cum statement.
Interest & Penalty
- 1% per month interest will be levied if TDS is not deducted.
- 1.5% per month interest will be levied if TDS deducted, but not paid.
- Rs. 100 per day will be levied as penalty if return is filed after due date.
- Amount of penalty must not exceed amount of TDS.
Please note – Note: Tax shall not be deducted if the aggregate amounts of rent credited or paid during the financial year to the payee does not exceed Rs 1,80,000.
Terms to be understood :
Rent as per explanation given by income tax act ,1961 :
The term Rent means any payment if becomes payable under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of following things :
- Land appurtenant to a building.
Who are the persons liable u/s 194 I :
1.Person other than individuals & Huf:
Any person who make payment of rent to a resident shall be bound to deduct TDS under section 194 I of income tax act , 1961.
2. However, if the person is an individual or HUF then they should deduct TDS under this section only if gross receipts or turnover from the business or profession carried on by him exceeds the limit as prescribed under section 44 AB of income tax act 1961 during the last financial year…………#It means individuals and Huf those who are not liable to tax audit u/s 44 AB don’t have any need of becoming bound by this provision #
Due Date for Issue Quarterly TDS Certificate (Other Than Salary)
|Period||TDS Certificate Due Date|
|April to June||30th July|
|July to September||30th October|
|October to December||30th January|
|January to March||30th May|
Due Date For Filing TDS Return (Online & Offline)
|Quarter||Due Date for Form 24Q & Form 26Q||Form 27Q||Form 27EQ|
|April to June||15th July||15th July||15th July|
|July to Sept||15th Oct||15th Oct||15th Oct|
|Oct to Dec||15th Jan||15th Jan||15th Jan|
|Jan to March||15th May||15th May||15th May|
Rate applicable at which tax to be deducted :
- 1. Rent paid for plant, machinery or equipment ……TDS @ 2%.
- 2. Rent for land, building or both ……..TDS @ 10%.
- 3. Rent for furniture or fittings ……. TDS @ 10%.
- 4 .The Receiver of Rent shall intimate his PAN Card No. to the Party from whom he is receiving the Payment. If the PAN Card No. has not been intimated, TDS on Rent shall be liable to be deducted @ 20% under Section 206 AA.
- 5. Surcharge is not applicable on TDS on Rent except where payment is made to a foreign company and the amount exceeds Rs. 1 Crore, the Surcharge levied there on as per the rates in force.
- 6.No education cess or secondary and Higher education cess is to be additionally charged on TDS on the amount of rent paid.
- 7. If the municipal taxes, ground rent etc are borne by the tenant, no tax would be deducted on such amount.
When TDS cannot be made
- Where the payee is the Government, local authorities u/s 10(20) and statutory authorities u/s 10(20A), then TDS cannot be made – [Circular No. 699, dated 30-1-1995].
- Where 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 section 10(23FCA), owned directly by such business trust
Exemption or relaxation from the provision
- When a declaration in Form 15G (in duplicate) is furnished by the assessee to the payer [Refer section 197A]
- When the recipient applies to the Assessing Officer in Form 13 and gets a certificate authorising the payer to deduct tax at lower rate or deduct no tax. [Refer section 197]