TDS u/s 194IB- At a glance

TDS u/s 194IB- At a glance

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TDS u/s 194IB- At a glance

Section 194 IB relates to TDS deducted by individuals and HUF to residents on rent paid.

  1. A) Landlord is Resident-

                  Sr. No

            PARTICULARS

                 REMARKS

                     1

Person liable to deduct

Individuals or HUF who are not required to get their books

 

audited u/s 44AB

                     2

When the liability arises

Rent paid to residents per month or part thereof > 50,000/-

Note: Rent paid to non- residents is covered u/s 195.

                     3

Amount of tax to be

deducted

. Landlord furnished PAN- 5%

. Landlord does not furnish PAN- 20%

                     4

Time of TDS deduction

. TDS has to be deducted and remitted once in a year

either at the time of payment or credit for the last

month of tenancy or last month of the financial year.

Note: if the assessee changes place of residence during

the financial year, TDS has to be deducted from rent

paid to both landlords if rent amount exceeds 50,000/-.

                     5

Requirement of TAN by the

assessee (Individual or

HUF)

TAN is not required by the assessee (Individual or HUF)

deducting and remitting TDS.

                     6

Due Date of payment of

TDS

TDS has to be paid within 30 days from the last day of the

month for which TDS is deducted in form 26QC.

                     7

Details required for filling

form 26QC.

. PAN of landlord and tenant

. Address of landlord and tenant

.  Period of tenancy

.  Amount of rent payable

. Rent payable in last month

. Total amount paid/ credited

. Date of deduction of tax

. Interest or late fee payable

                     8

Interest or penalty

.  Interest @1% is levied if TDs is not deducted, and

.  Interest @1.5% p.m. is payable if TDS is deducted

but not paid to the government.

.  Penalty @ Rs. 100 per day is levied for late filing of

Form 26QC.

 

  1. B) Landlord is Non- resident-

.  TDS u/s 195 is deducted for payment made to non- resident.

 

. TDS @31.20% is deducted irrespective of the amount of rent.

. TDS can be deducted at a lower rate. Any of the following 2 methods can be followed-

  1. a) Tenant can make an application to the Income Tax Officer, u/s 195(2) of Income Tax Act, or
  1. b) The landlord can make an application either by themselves or through their

authorized representatives in India to the Income Tax Officer, u/s 195(3) of the Income Tax Act

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