As per section 194I 

TDS is to be deducted on Rent at 10% in case of Land and Building and Furniture and 2% on Plant and Machinery

However,No TDS is to be deducted if annual rent is upto 240000 per annum. If rent is 240001 then TDS is deducted.

 

Section Name

Description

Cutoff

 

194 I

Rent

 

180000 P.A 240000 P.A. (From 1 April 2019)

Land and Building

Furniture

10%

Generator rent, machinery hire charges

2%

 


Changes in 194I Due to Lockdown

However,Due to Lockdown,Government has temporarily reduced Rate by 25%

hence,TDS Rate on Rent Service is Changed as follows

    Current Rate New Rate (Temporary)
TDS on Rent Land and Building, Furniture 10% 10%*75%=7.5%
Generator rent, Machinery hire charges                      2% 2%*75%=1.5%

 

Note - This New Rate is Temporary only if TDS Deducted form 14 May 2020 to 31 Mar 2021

After this old Rate will be applicable

 

Whether TDS to be deducted in following cases

1 Office Rent paid 10000 p.m to A ltd

View Answer

 2 Office Rent paid 20000 p.m to A ltd

View Answer

 3 Office Rent paid 25000 p.m to A ltd

View Answer

4 Office Rent paid 25000 p.m to A ltd, Rent Agreement starts from 1 December

View Answer

5 Office Rent paid 25000 p.m , Rent Agreement starts from 1 April.However Rent is paid to 2 parties Mr A and Mrs A

View Answer

6. Rent paid for Office 15000 pm,4000 pm for AC and 2000 for Furniture to A ltd

View Answer

QUESTIONS

Q1.

Office taken on rent from DLF @50000pm. from 1 April onwards

As per agreement one month rent and 2 month security deposit given to DLF by cheque

View Answer

Q2.

Suppose in Q1 rent agreement Started from 1 Jan instead of 1 April

View Answer

Q3 .

Guest house taken on rent @ 25000 pm. From 1 June onwards

Guest house co-owned by Rajesh khoslaand Shalinikhosla.

View Answer

Q4.

Guest house taken on rent @ 100000 pm. As per agreement 2 month rent and 3 month security deposit payable to Mr. Ajay Verma

View Answer

Q5 .

Generator taken on rent at annual rent of Rs. 60000 from Tarang Electrical's

View Answer

Q6.

Solve Q5 assuming 5 Generators were taken on Annual rent of Rs. 60000 each from Tarang Electricals.

View Answer

 

  1. Tax Practical
  2. Practical TDS (Non Salary)

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.