Discussion_TDS


	Home Team Services Company Law Matters Labour Laws Accounting Services Auditing and Assurance Setting up New Business & Processes Direct & Indirect Taxes Clientele Discussion Forum TDS Articles Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Query Careers Admin Login Email Login Time Sheet Contact Us

Disclaimer:
Though all necessary precautions have been taken while providing following content however, all these contents are person opinion of the author and does not represent any legal opinion on the subject. SPS Associates and the authour, expressly disclaim all and any liability and responsibility to any person in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents in this puplication.

Applicability of Section 194IB of Income Tax Act, 1961

As per amendment under section 194 IB of the Income tax Act, 1961 which is effective from 1st June 2017, The Individual or HUF should deduct the tax on the rent what they are paying to the resident persons if it is more than Rs.50,000 per month or part of a month during the previous year. Provisions of earlier Section 194I (which were applicable to other categories except Individual and HUF) are still intact and there is no change in them. Therefore, threshold limit u/s 194I is still Rs. 1,80,000 per annuam.

Unlike other provisions, TDS u/s 194 IB need to be deducted at the time of credit, for the last month of the previous year (i.e. March) or the last month of tenancy (if the property is vacated during the year), as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

TDS u/s 194IB has to be deducted @ 5% (AY 2018-19) and the tenant need not to obtain any TAN for this. In this case, tenant shall mention his PAN for such deduction. However, PAN of Landlord is mandatory to apply rate of 5% but in case, PAN is not provided by Landlord, TDS has to be deducted @ 20% on rental value but such deduction shall not exceed the amount of Rent payable for the last month of the previous year or last month of tenancy. Therefore, maximum deduction in case of non-availability of PAN of Landlord shall be last month's rent. In case of delay in tds deposit, Interest @ 1.5% per month for every month or part of the month shall be payable by tenant alongwith TDS.

The tenant need to file return of such deduction in Form 26QC and certificate of tax deduction shall be issued within 15 days from the date of filing. Such tax deducted will be available for the landlord in Form 26AS and this can be set-off with his tax liability. Tenant will be benefitted with the rent amount so paid to landlor as expense, if used for business purpose or to claim deduction u/s 10(13A) if salaried.

Employer should ensure that wherever, rent agreement/ Rent receipt for more than Rs. 50,000 per month is submitted by employee to claim HRA, at year end, it should be supported with copy of Form 26QC to ascertain that employee has met his staturoty liability.