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Query on 194 i

Ankur (na) (252 Points)

05 October 2013

Hello everyone

kindly help me solve following query.

suppose x an individual whose gross turnover in immediately preceding year was 1.5 crore pays rent of Rs 190000 to another individual for his residential house (taken on rent). is he required to deduct TDS as per 194 I or not?

Thanking in anticipation.

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10 Replies

dhruv patel (ca) (75 Points)
Replied 05 October 2013

There no metter of gross turnover .... if u are paying rent more than 180000 than tds at 10% is must be deducted. but if the receiver has submited form 15G~H than it is not require to deduct tax

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Mihir (Wealth Manager) (5293 Points)
Replied 05 October 2013

The limit is 180,000/- p.a to deduct TDS u/s 194i

One Of A Kind (CA Final & CS Professional Student) (187 Points)
Replied 05 October 2013

If the residential house taken on rent is used for business purpose, then only TDS is applicable and would be deductible u/s 194 I

CA Pallav Singhania (IT System Auditor) (33462 Points)
Replied 05 October 2013

Agree with above replies,

The limit prescribed under section 194i TDS on Rent is 180000 p.a

Note - * Individual Or HUF has to deduct TDS if his Gross Receipts Exceeds 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.

RANGANATH SHENOY (CHARTERED ACCOUNTANT) (29 Points)
Replied 06 October 2013

Renting for personal use will not call for TDS.However if it is for business use as a employee quaters etc, tds is applicable..

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parshwa shah (na) (45 Points)
Replied 06 October 2013

I am not getting clear idea on the line of difference between personal use and business purpose.pls explain

tme s limted,bt drms r unlmtd (Mba ( fin.) Ca final Student) (257 Points)
Replied 06 October 2013

individual is only liable to tds if his account is audited last year, other wise he is not liable to deduct tds, if his account is audited and he is paying rent above 180000/ of office purpose only he is liable to deduct tds

CA Adesh Gupta (Finance Manager) (160 Points)
Replied 06 October 2013

/forum/service-tax-reverse-charge-mechanism-267198.asp#.UlFSOCTIWDg

please answer this query as well

CA Adesh Gupta (Finance Manager) (160 Points)
Replied 06 October 2013

If residential house is taken on rent for official purposes and in name of proprietorship firm, only then tds has to be deducted otherwise there is no liability