TDS on Rent comes under section 194-I of the Income tax Act. The newly amended 194-I section states that, the renting of Plant/Machinery/Equipments for all parties will entertain TDS at 2% and renting of Land/Building/Furniture/Fittings at 10% for all types of assessees.
Applicability
The provision are applicable only in cases where the person making the payment of rent is an individual or HUF having turnover of more then Rs. 40 Lakhs from business or gross receipts of more than Rs.10Lakhs from profession in the immediately preceding financial year or any other person responsible for paying to a resident any income by way of rent.
Minimum Amount
The TDS is required to be deducted in case the rent paid or payable to a particular person during a financial year exceeds Rs. 1,20,000.
On Which Property ?
Machinery, Plant and equipments, building whether rented together with building or separately
Rate of TDS on Rent
| Particulars | Rate upto 30.09.09 | Rate w.e.f. 01.10.09 |
| a) Use of any land, building furniture or fitting | 15% (when payee is individual or HUF) | 10% for all assesses |
| b) Use of plant, machinery or equipment | 10% | 2% for all assesses |
W.e.f. 1-4-2009, education cess or H.E.C. Is not required to be deducted at the time of making deduction of tax at source in case of payment to resident. Surcharge and Education Cess for A.Y. 2010-2011
w.e.f. 1-4-2010 rate will be 20% if payee does not furnish the PAN.
Related posts:
- Tax Provisions of Rent Arrears
- TDS Provisions from Winning From Lottery, Crossword Puzzle, Card Games etc.
- Changes of TDS in Union Budget 2009 | TDS Amendments applicable for A.Y.2010-11
- TDS on Payment to Contractor/Sub-Contractor under New Provisions w.e.f. 1-10-2009
- How to Deal TDS Provisions When Salary Receive from More than One Employer ?
{ 13 comments… read them below or add one }
Thanks for providing snap shots about various provisions related to TDS .
I will b obliged if you could forward me the same about TDS u/s 194 B—Winning from lottery / cross word puzzles.
Prakash Joshi.
new TDS SLAB RATES
we have a unit in SEZ. we are likely to pay to the SEZ developer 1) Lease Premium for the perpectual term of 50 years as one time capital cost and 2)Nominal Lease Rent on annually payable as recurring expenses.
Please advise TDS is attracted on 1) above
We are importer, and have to make regular payment to varius party.
1) custom duty
2)a) landing directly to kolkata port trust or in some cases to shipping company
b) lease rent to kpt or in some cases to shipping co
3) Plant quarantine fees
4) shipping co various payment
now whtr liability of tds on above exist.
again in some cases our cha make payment to the shipping co on vaious paymnet and reimburse on us in such a case if tds deduction liability comes than on whose tds to be deducted
please suggest
thanks for all the updates which are provided.
I like to know whether TDS applicables for Rent payment single payment for Rs.105000/-pa for building (kalyana Mandabam)
I am renter, paying 6000 pm rent. To show/submit the receipet of rent does require PAN card of land owner? what is minimum and maximum limit of rent without PAN card??? Does it also vary class of city?
We are making payment of Rent to an individual which amount to Rs.120,000 for FY 2009-10, do we need to deduct TDS on such payment?
its good site, i always perfer it as ready reference, it is very helpful for me
Hi,
Is TDS on Hostel rent is applicable. If yes, tel me rate on TDS.
new TDS slab rates
IF AN INDIVIDUAL HAVING AGREEMENT WITH THE PARTY IS PAYING RENT WHICH EXCEEDS 120000 DURING THE YEAR BUT GET REIMBURSED BY THE COMPANY . IN THAT CASE IS TDS IS TDS TO BE DEDUCTED EVEN IF INDIVIDUAL TURNOVER IS LESS THAN 40 LAC BUT AS FINALLY RENT IS RECORDED IN COMPANY BOOKS
Its a very good site and i got the required info on TDS & its provisions