TDS on Rent | Section 194I of the Income Tax Act
- Blog|Income Tax|
- 3 Min Read
- By Taxmann
- Last Updated on 28 June, 2022
1. Who is liable to deduct TDS on Rent?
This section is applicable on any person (not being an Individual or a HUF who is not liable for audit us 44AB) who is responsible for payment of rent. As per the Budget 2017, an Individual or HUF (not liable for Tax Audit) paying rent to a resident exceeding an amount of Rs. 50,000 per month is also liable to deduct TDS @ 5% under section 194-IB. This amendment will be effective from 01.06.2017
2. When to Deduct TDS on Rent?
TDS has to be deducted on payment of any income by way of rent at the time of credit to the account of payee or at the time of payment whichever is earlier.
3. Rates of TDS Deduction:
Person shall be liable to deduct TDS on rent at the rate of:-
- two per cent for the use of any machinery or plant or equipment; and
- ten per cent for the use of land or building (including building) or land appurtenant to a building (including factory building) or furniture or fittings
4. Exemption Limit:
For the purpose of this section- ‘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
It is not necessary that asset is owned by the person receiving the rent.
- Warehouse charges
- Factory Rent
- Rent inclusive of municipal tax, ground rent (if municipal rent or ground rent borne by the tenant no tax will be deducted on such sum)
5. What is the Time Limit for Payment of TDS?
6. What are the Due Dates for Filing of TDS Returns and Issue of TDS Certification i.e. Form 16A?
Every deductor responsible for the deduction of tax from payment other than salary shall file quarterly return in Form 26Q and issue quarterly TDS certificate by following dates:
Quarter of deduction
Due date of filing TDS Return
Due date for TDS Certificate
April to June
July to Sept
Oct to Dec
Jan to March
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied