Questions and answers

What is TDS 194IB?

What is TDS 194IB?

What does Section 194IB specify? According to Section 194IB, it is mandatory for any person, i.e. individuals / HUF not liable to audit u/s 44AB, to deduct taxes for a rent paid to a resident, exceeding Rs 50,000 per month.

What is the TDS on house rent?

Section 194-IB of the Income Tax Act, 1961 states that for all the transactions with effect from June 1, 2017, tax @ 5% or 3.75% should be deducted (depending upon the Date of Payment/Credit to the Landlord) by the Tenant/ Lessee/ Payer of the property at the time of making payment of rent (to Landlord / Lessor/ Payee) …

What is TDS on rent?

As per the 194-I section of Income Tax Act, 1961, a person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct 10% of the annual rent as tax deducted at source, if the annual rent exceeds Rs. 2.4 lakhs. Earlier, this TDS limit for deduction of tax on the rent was Rs. 1.8 lakhs.

What is the rate of TDS under Section 194?

Thus, the rate of TDS from payments made by the government or other specified persons to any contractor will be 2% or 1% of the gross payment or, as the case may be, the net payment, depending on the terms of the contract. The rate is 1.5% or 0.75% for transactions from 14 May 2020 until 31 March 2021.

What is the section 194?

Section 194O has been introduced in the Union Budget 2020. According to Section 194O, an e-Commerce operator is required to deduct TDS for facilitating any sale of goods or providing services through an e-Commerce participant. TDS on e-commerce operators under section 194-O is applicable from 1 October 2020.

What is 4IA and 4IB in TDS?

12 July 2013 4IB for Rent from House Property/Land & Building/Furniture. 4IA for Rent of Plant & Machinery.

What is 94i in TDS?

What is Section 194I? The person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct tax at source. TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2020-21.

Can buyer claim TDS on property?

Yes, TDS on property is refundable. At the time of sale of property, buyer is required to deduct TDS on property and deposit the same with the government. But, the seller is allowed to avail credit of the same or claim TDS refund by filing his ITR.

What is 94ia and 94ib?

TDS (Tax Deducted at Source), as the name suggests, this is a tax deducted at the source of certain income received by a person. In the case of Section 194IA and Section 194IB, TDS has to be deducted by the payer of the rent and the buyer of the property respectively.

Why was Section 194 IB added to TDs?

One such debutante is Section 194-IB. Before this, there was only one section which brought rent in under the umbrella of TDS and that was Section 194-I. Now you must be wondering, why sec 194-IB brought in when 194-I was already there. The answer is “to widen the tax base”.

Can a non resident owner deduct TDs you / s 194ib?

In case rent is paid to non-resident owner, TDS u/s 194IB shall not be deducted. Tenant may be resident or non-resident. Both are liable to deduct TDS u/s 194IB.

Who is covered by section 194-ib on rent of property?

In Section 194-I, only those individuals & HUF were covered, who were liable to get there accounts audited u/s 44AB. This section left a huge portion of rent payers uncovered as not everyone became liable for audit.

What is section 194i of the Income Tax Act?

What is Section 194I of the Income Tax Act? Section 194I of the income tax covers TDS on rent. It imposes obligation for TDS deduction on persons (other than individual/HUF) making rental payments to resident indians above a specified limit i.e. Rs.2,40,000 in a year.