Section 194IB of Income Tax - TDS on Rent payment by Individuals or HUF
All about TDS on Rental payments made by Individuals or HUF - detailed analysis of Section 194IB
TDS ON RENTAL PAYMENTS BY INDIVIDUAL/HUF - SECTION 194IB
Section 194IB casts additional liability on all Individuals or HUF even if they do not fall under Section 194I i.e. business turnover exceeding Rs.1 Cr. or Professional Income exceeding Rs.50 lacs.
As per this, every Individual or HUF is liable to deduct TDS on Rent paid to any resident if the rent is more than Rs.50000/- for the month or part of the month.
The TDS is to be deducted at the time of payment of rent or in case the same is credited, it has to be deducted during the last month of the Financial year. If the property is vacated during the year, it has to be deducted from the last month's rent before the vacation of the property.
The Rate of Deduction of TDS in this case is 5% of the rent amount.
Here, Rent means any payment, by whatever name called, under any lease, sub-lease, tenancy, or any other agreement or arrangement for the use of any land or building or both.
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