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TDS Return for Rent Payable

“Paying Rent Over ₹50,000? File your TDS on Time!”

TDS Return for Rent Payable

What is TDS on Rent?

TDS (Tax deducted at source) on rent is applicable under Section 194-I of the income tax Act,1961.
Under this act it is about how a payer who is paying the rent can deduct TDS from the payment and submit it to the Income Tax Department. This section doesn’t only talk about TDS on building, it also explains TDS on rent payment for hiring plant, machinery or equipment and TDS on payment for rent on Building, Land or furniture & fittings.

But these all have different rates. Section 194-I is to deduct tax on rent payment for hiring plant, machinery or equipment at a rate of 2% and 10% for rent paid for use of land, building or furniture & fittings. TDS will be deducted if the rent exceeds the threshold limit of Rs 6 lacs in the financial year or Rs 50,000 monthly. Under this, TDS is to be deducted by any person, including individuals or HUFs, whose sales or turnover from business exceeds Rs.1 crore or whose gross receipts from profession exceed Rs. 50 lacs during the financial year immediately preceding the financial year in which such rent is liable to be paid.

When the rent is paid to an NRI, TDS at 30% must be deducted, irrespective of the amount paid. Surcharge and cess should also be deducted over and above TDS

Sr. No	Nature of Payment	Rates
1	Rent of plant, equipment, and machinery	2%
2	Rent of land, building, furniture, or fitting	10%

Who Needs to Deduct TDS on Rent?

Any person including Individual and HUFs whose sales or turnover from business exceeds Rs.1 crore or whose gross receipts from profession exceed Rs. 50 lacs during the financial year immediately preceding the financial year in which such rent is liable to be paid.
Rent amount should exceed 6Lakh in a year or 50000 per month in any financial year

Documents Required:

When TDS needs to be deducted u/s 194I?

TDS on rent needs to be deducted at source it means it needs to be deducted at the time of doing payment

Consequences of Non-Deduction/Non-Payment of TDS

TDS not deducted: Pay interest @ 1% per month from the date when tax is deductible till the date when tax is deducted.
TDS deducted but not deposited: A taxpayer who has deducted tax but not deposited the same to the government is liable to pay interest @ 1.5% per month from the date when tax is deducted to the date of deposit of the TDS.

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TDS Return for Rent Payable

TDS Return for Rent Payable

What is TDS on Rent?

Who Needs to Deduct TDS on Rent?

Documents Required:

When TDS needs to be deducted u/s 194I?

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