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TDS on Rent – Terms, Due Dates, Rates, Person who Liable

TDS on Rent – Terms, Due Dates, Rates, Person who Liable. Complete Details for TDS on Rent. Find Full Details for 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 For AY 2015-16 & AY 2016-17, 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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Complete Details for TDS on Rent

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)

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.

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One comment

  1. What will be rate of TDS if rent is for Both Building and Plant and Equipment.

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