Hello Lalit, Yes, it is applicable to any individual or HUF, except such individuals/HUF who are required to get their books of accounts audited. Books of Accounts are required to be audited if total turnover or receipts of a business exceed Rs 1 crore or where receipts of a profession exceed Rs 50 lakh. Hope this helped.
Section 194IB of the Income Tax Act, 1961 requires the individual / HUF, who are not required to gets their account audited, to deduct TDS in case the rent amount exceeds INR 50,000 per month or part thereof. However, individuals and HUF who were liable for audit in the preceding previous year, are required to deduct tax at source if the total rent exceeds Rs 2.4 lakh during the year. Team Clear
Greate video 👌. One doubt, the condition for an individual or HUP is confusing. Contradicting parts: 2:45 - 3:04 5:32 - 5:44. Doubt Short version: What if, For an IT professional (individual), rent is 70K/month, and total income from salary is less then 50 Lakh with no other business. Liable to deposite TDS on rent in any section? In details: Example (Rent for FY 2021-2022): Total Professional income (Gross) in previous FY (2020-2021): Less than Rs. 50 Lakh (No Business) Total Professional income (Gross) in current FY (2021-2022): Less than Rs. 50 Lakh (No Business) Rent paid from April 2021 - Sept 2021 = 19000 x 6 = Rs. 1,14,000 Rent going to paid from Oct 2021 - March 2022 = 70000 x 6 = Rs. 4,20,000 Total Rent paid = Rs. 5,34,000 Am i eligible to deposite TDS on Rent in any section? Please guide, many of the people may have similar situation. Thank you!.
Hi Sagar, Yes, you need to deduct and deposit TDS under Section 194IB. For more details, refer our page cleartax.in/s/section194ib-194ic-under-income-tax-act and video ua-cam.com/video/AGuMy14frEg/v-deo.html. You can also refer to Clear chronicles on Section 194IB. Hope this helped.
Maam please reply Q- I have a commercial building I didn't collect 18percent GST tax from my renter but they use to pay me rent by deducting 10 percent TDS-- Should I collect 18% GST tax or it is mandatory to collect-- But I use to pay 18% GST tax return from my rent income - Without collecting
If your gross receipts from your rental services exceeds 20 Lakhs then you are liable to collect GST. here as you are saying you did not collect GST means we have to assume the amount you received as rent includes GST.
No business no income, no professional income, no receipt then section 194ib,194ia,194m applicable to individual or huf!
Hello Lalit,
Yes, it is applicable to any individual or HUF, except such individuals/HUF who are required to get their books of accounts audited. Books of Accounts are required to be audited if total turnover or receipts of a business exceed Rs 1 crore or where receipts of a profession exceed Rs 50 lakh. Hope this helped.
If the rental is 3lakh per year and turnover not exceed 1cr then to tds has to be cut
Section 194IB of the Income Tax Act, 1961 requires the individual / HUF, who are not required to gets their account audited, to deduct TDS in case the rent amount exceeds INR 50,000 per month or part thereof.
However, individuals and HUF who were liable for audit in the preceding previous year, are required to deduct tax at source if the total rent exceeds Rs 2.4 lakh during the year.
Team Clear
Greate video 👌.
One doubt, the condition for an individual or HUP is confusing.
Contradicting parts:
2:45 - 3:04
5:32 - 5:44.
Doubt
Short version:
What if,
For an IT professional (individual), rent is 70K/month, and total income from salary is less then 50 Lakh with no other business.
Liable to deposite TDS on rent in any section?
In details:
Example (Rent for FY 2021-2022):
Total Professional income (Gross) in previous FY (2020-2021): Less than Rs. 50 Lakh (No Business)
Total Professional income (Gross) in current FY (2021-2022): Less than Rs. 50 Lakh (No Business)
Rent paid from April 2021 - Sept 2021 = 19000 x 6 = Rs. 1,14,000
Rent going to paid from Oct 2021 - March 2022 = 70000 x 6 = Rs. 4,20,000
Total Rent paid = Rs. 5,34,000
Am i eligible to deposite TDS on Rent in any section?
Please guide, many of the people may have similar situation.
Thank you!.
Hi Sagar,
Yes, you need to deduct and deposit TDS under Section 194IB. For more details, refer our page cleartax.in/s/section194ib-194ic-under-income-tax-act and video ua-cam.com/video/AGuMy14frEg/v-deo.html. You can also refer to Clear chronicles on Section 194IB. Hope this helped.
hello, is this same rules applies for tds on Royalty ? and where will I get the information regarding same.
thanks
@Nachiket Chandurkar, TDS on royalty is deducted under section 194J. You can refer cleartax.in/s/section-194j.
Team Clear
What if the rent is exactly 240000 in year...Am i liable for TDS?
No Need
Maam please reply
Q- I have a commercial building I didn't collect 18percent GST tax from my renter but they use to pay me rent by deducting 10 percent TDS-- Should I collect 18% GST tax or it is mandatory to collect--
But I use to pay 18% GST tax return from my rent income - Without collecting
If your gross receipts from your rental services exceeds 20 Lakhs then you are liable to collect GST. here as you are saying you did not collect GST means we have to assume the amount you received as rent includes GST.
Collect it bro. You dont need to pay if you are under threshold