Section 194-I - TDS on Rent

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....redit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. Rate of TDS: (i) For use of Plant & Machinery - 2% (ii) For use of Land, building, furniture or fitting - 10% Threshold Limit -  * From 01.07.2010 to 31.03.2019 -  No TDS where the income by way rent credited or paid amount does not received exceed the aggregate of the amount Rs. 1,80,000 during a financial year. * From 01.04.2019 to 31.03.2025 - No TDS where the income by way rent credited or paid amount does not received exceed the aggregate of the amount Rs. 2,40,000 during a financial year. * From 01.04.202....

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....ther or not any or all of the above are owned by the payee. * TDS should also be deducted on advance rent, warehousing charges and non-refundable deposits. * Where the share of each co-owner in the property is definite and ascertainable, the limit of Rs. 50,000 will be applicable to each co-owner separately. * The landing and parking fee were definitely "rent" within the meaning of the provisions of section 194-I as they were payments for the use of the land of the airport. * Where composite arrangement is made for user of premises and provision of manpower for which consideration is paid on the basis of specified percentage of turnover, if the essence of composite arrangement is for taking premises on rent, tax will be deducted u/s....

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....re not liable for TDS under section 194-I of the Act. [ Circular no. 35/2016 dated 15.04.2008 ] * Rate - Contract - A rate-contract is different for this reason from other agreements, where rooms are taken on regular basis. Consequently, the provisions of section 194-I while applying to hotel accommodation taken on regular basis would not apply to rate contract agreements. [ Circular No. 5/2002, dated 30.07.2002] * Tax credit when rent is paid in advance - The assessees of rent can claim tax credit in getting due credit for tax deducted at source under the provisions of section 199 of the Income-tax Act, 1961 in respect of tax deducted in terms of section 194-I of the Act. [ Circular No. 5/20....