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Complete Details for TDS on Rent

Complete Details for TDS on Rent

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 :

  1. Land.
  2. Building
  3. Land appurtenant to a building.
  4. Machinery.
  5. Plant.
  6. Equipment.
  7. Furniture.
  8. Fittings

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)

PeriodTDS Certificate Due Date
April to June30th July
July to September30th October
October to December30th January
January to March30th May

Due Date For Filing TDS Return (Online & Offline)

QuarterDue Date for Form 24Q & Form 26QForm 27QForm 27EQ
April to June15th July15th July15th July
July to Sept15th Oct15th Oct15th Oct
Oct to Dec15th Jan15th Jan15th Jan
Jan to March15th May15th May15th 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

Complete Details for TDS on Rent


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