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 180000 per annum

Section Name

Description

Cutoff

 

194 I

Rent

 

 

180000

Land and Building

Furniture

10%

Plant of Machinery

2%

 

Whether TDS to be deducted in following cases

1 Office Rent paid 10000 p.m to A ltd

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 2 Office Rent paid 15000 p.m to A ltd

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 3 Office Rent paid 20000 p.m to A ltd

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4 Office Rent paid 20000 p.m to A ltd, Rent Agreement starts from 1 December

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5 Office Rent paid 20000 p.m , Rent Agreement starts from 1 April.However Rent is paid to 2 parties Mr A and Mrs A

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6. Rent paid for Office 10000 pm,4000 pm for AC and 2000 for Furniture to A ltd

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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

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Q2.

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

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Q3 .

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

Guest house co-owned by Rajesh khoslaand Shalinikhosla.

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Q4.

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

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Q5 .

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

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Q6.

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

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

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .