TDS on Rent payments by certain Individuals or HUF

Section 194-I covers the cases where TDS is required to be deducted against the payment of rent under the Income Tax Act, 1961. However, section 194-I does not require deduction of TDS where the rent is paid towards land or building took on rent for residential purposes. Section 194-IB comes into the picture which obliges deduction of tax at source where the rent is paid in excess of Rs. 50,000 irrespective of the purpose of the tenant. In this article, we are discussing intricacies of section 194-IB which deals TDS on rent payments by certain Individuals or HUF (not covered u/s 194-I).

Who is liable to deduct TDS u/s 194-IB?

When is TDS required to be deducted under section 194-IB?

What is the rate of TDS under section 194-IB?

TDS under section 194-IB is required to be deducted at the rate of 5%. However, if the PAN of the landlord is not available, TDS shall be deducted at the rate of 20%. Please keep in mind that the total amount of TDS u/s 194-IB cannot exceed the amount of rent of the last month.

Is TAN required for deduction of tax u/s 194-IB?

No, there is no requirement of obtaining TAN for deduction of tax u/s 194-IB.

What is the threshold limit of TDS under section 194-IB?

How to deposit TDS under section 194-IB?

Disclaimer: The above article is meant for educational purposes only and Taxwink is not responsible for any loss or damage caused to any person due to any use of the above information. Readers are therefore requested to act diligently and under consultation with any professional before applying the above information.