TDS on Rent from Leased Agricultural Land deductible or not

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Praveen Agrawal (Querist)

25 January 2011 Assessee is a Pvt Ltd Comapny. It derives Income from Tea Garden, by producing and cultivating green Tea leaves. The tea garden is planted on a leased land for which the said co is paying annual rent at Rs 195000 p.a.
If the said company is laible to deduct Tax at source on Rent?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

25 January 2011 TDS u/s 194I on rent will apply in this case.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

25 January 2011 Yes, I agree since the word used in clause (b) and (c) of section 194I is "any land".

Praveen Agrawal

Praveen Agrawal (Querist)

26 January 2011 But resp Sirs,
The lease rent paid for Agricultural Land is an agricultural Income to the recepient. Even then the payer is liable to deduct tax u/s 194I ??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

26 January 2011 Then the deductee has to obtain a certificate for "no deduction of income tax" from their jurisdictional Income tax officer under section 197 of the Income tax Act,1961 and submit to the deductor for not deducting tax under section 194I of the said act.

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CourseCart.in

CourseCart.in (Expert)

08 April 2014 TDS to be made only on income chargeable to tax. Agriculture Income is not chargeable to tax. Hence no TDS is required. Please refer https://taxguru.in/income-tax/tds-on-exempt-incomes-especially-agricultural-income.html

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