Tds on furntiure given on rent

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RAJEEV (Querist)
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17 November 2011 WE HAVE OCCUIPED A OFFICE ON RENT WITH AGREEMENT FOR OFFICE AND FURNITURE WHICH WILL BE UTILSED BY US. FOR RENT ON PREMISES WE DEDUCT AT 10%. FOR FURNITURE OUR LANDLORD IS SAYING IT SHOULD 2% .. PLS ADVISE

Sanjana

Sanjana (Expert)
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17 November 2011 As per Section 194I of the Income Tax Act, 1961, TDS on Land, Building and Furniture is to be deducted at the rate of 10%. Hence TDS should be deducted at the rate of 10% on the entire amount of Rental figure.

2% TDS rate is applicable u/s 194I only for Rent of Plant, Machinery and Equipment.

Deducting TDS at lower rate would result in disallowance of the proportionate amount of expenditure to you.

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