Hello,
My family owns a property for rental income purposes, so I will be able to answer your query on who is liable to deduct TDS on rent.
TDS on rent comes under the Income Tax Act’s Section 194I. Rental income received from renting of building, land, furniture & fittings, plant & machinery, etc is subject to TDS.
Let’s Understand Section 194IAs per this section, a person (not being a HUF or Individual) who is responsible to pay rent is liable to deduct 10 percent of the annual rent as TDS, if the annual rent exceeds Rs. 2,40,000.
The TDS limit for deduction of tax on the rent was Rs. 1,80,000 until the financial year 2018-2019. However, it was increased to Rs 2,40,000 with effect from the financial year 2019-20.
Who is Liable to Deduct TDS:The person (not being a HUF or an Individual) who is responsible to pay any rent is liable to deduct tax at source.
The HUF/individual (not covered under tax audit) who is responsible to pay rent more than Rs. 50K monthly are also liable to deduct TDS at 5 percent.
If the total amount of such income paid/credited or likely to be paid/credited during the FY by the aforesaid person to the account of or to the payee is more than Rs. 2.4L.
Read more:
What is the TDS limit for rent?
What is the TDS rate on rent?
When is TDS deducted on rent?
How to calculate TDS on rent with example
How to pay TDS on rent online?
I hope now you know who is liable to deduct TDS on rent.
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Authors Of The Question
Who is liable to deduct TDS?
Gayatri
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2 Year
2021-12-30T15:05:29+00:00 2021-12-31T16:28:28+00:00Comment
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