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Rent tds 194i

Syed Razzaq (Financial Analyst) (24 Points)

08 August 2012

Hi,

My Brother is owner of a Commercial Building. He has a Rental Income of Rs 52,000 monthly. Now, I understand that according to 194I any Rent exceeding 1,80,000 for 2012-13 and 1,20,000 for 2011-12 is deducted at 10%.

1) What does exceeding imply? The Rent payer deducts Rs 1,80,000 from the 12 months rental income and then levies10%? Or 10% should be applied directly to Rs 52,000 each month?

2) My brother is an NRI and does not have a PAN card. So what will be the consequesnces? Does the rate change or Something?

3) How does the Rent Payer apply for TAN since its required from my research?

Can someone please reply.

Thanks

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4 Replies

neeraj (CA) (930 Points)
Replied 08 August 2012

Payer will pay u rent of rs.52000 p.m. after deducting 10% TDS from it.

But if u don't have PAN then rate of TDS will be 20%.

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CA Sankalp Patwa (CA) (193 Points)
Replied 08 August 2012

section 194i will be applicable resident deductees

for reference please refer below bare act

Rent.

⁷⁰194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to ⁷¹[a resident] any income by way of rent⁷², shall, at the time of credit 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, ⁷³[deduct income-tax thereon at the rate of—

⁷⁴[(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]

Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed ^74a[one hundred and eighty thousand rupees] :

⁷⁵[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section.]

Nainesh (Senior Audit Assistant) (41 Points)
Replied 08 August 2012

TDs u/s 194I will deducted @ 10% on entire rent of Rs. 52000 but since no PAN No. it will be deducted @ 20%. Apply for TAN with nsdl or utsl in form 49B.find attached Form 49b

Attached File : 845503 1033845 itr62form49b.pdf downloaded: 234 times

Praneeth (Ca Final ) (49 Points)
Replied 09 August 2012

Originally posted by : NAINESH
	TDs u/s 194I will deducted @ 10% on entire rent of Rs. 52000 but since no PAN No. it will be deducted @ 20%. Apply for TAN with nsdl or utsl in form 49B.find attached Form 49b