Mr. X is owner of a plot. Mr. X has given this plot to Mr. Y on rent basis. (but indirectly Mr. Y will pay this whole amount to Mr. X-as Mr. X is already under high tax bracket)
XYZ a partnership firm is paying Mr. Y, Rs. 15,000/- PM for putting up hoarding on this plot.
Queries are- 1) TDS rate? 2) TDS under which section? 3) Whether an Agreement is necessary?
10 May 2016
For Transaction between X and Y- 194I applies. Y will deduct TDS on rent paid to X and ay to Govt.(if Y comes into Tax Audit Provisions) For Transaction between XYZ and Y- XYZ will deduct TDS on rent paid to Y and ay to Govt.