What is TDS under Section 194IB?

What is TDS under Section 194IB?

TDS on Rent Under Section 194IB of Income Tax

What is difference between 194i and 194IB?

Q1: What is the difference between section 194-I and 194-IB? Answer: Section 194-I is applicable only if tenant being Individual or HUF who is liable for Tax Audit in previous year and Section 194-IB is applicable only if tenant being Individual or HUF who is not liable for Tax Audit in previous year.

Who is liable to deduct TDS u/s 194IA?

The transferee
Who is Responsible for Deducting TDS Under Section 194IA of Income Tax Act? The transferee is responsible to deduct TDS. The transferee in this case is the purchaser of the immovable property. Moreover, such a transferee may be a resident or a non-resident.

How can I pay TDS under Section 194IB?

Section 194-IB of the Income Tax Act, 1961 states that for all the transactions with effect from June 1, 2017, tax @ 5% or 3.75% should be deducted (depending upon the Date of Payment/Credit to the Landlord) by the Tenant/ Lessee/ Payer of the property at the time of making payment of rent (to Landlord / Lessor/ Payee) …

Is 194IB is applicable to residential property?

The provisions of section 194IB are applicable if the rent amount exceeds Rs 50,000 for a month or part of a month during the previous year. The rent must be against residential property and the owner is a resident of India.

What is Section 194JA & 194JB?

As per the utility of e-TDS provided, section code 194JA is assigned to denote deduction of tax under section 194J @ 2% whereas section code 194JB is assigned to denote deduction of tax under section 194J @ 10%.

What is the threshold limit under section 1941?

The person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct tax at source. TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2020-21. The threshold limit was Rs. 1,80,000 until FY 2018-19.

What is Section 194M?

Section 194M of the Income Tax Act, 1961 states that for all the transactions with effect from September 1, 2019, Tax @ 5% or 3.75% should be deducted (depending upon the Date of Payment/Credit to the Deductee) by the Payer/Deductor at the time of making ‘Payments to Resident Contractors and Professional’ Tax so …

When was 194IB introduced?

01st June 2017
A new section 194IB has been introduced from 01st June 2017. This section requires certain individuals or HUF to deduct TDS on rent paid for the use of any land or building or both.

What is Section 4IA and 4IB?

12 July 2013 4IB for Rent from House Property/Land & Building/Furniture. 4IA for Rent of Plant & Machinery.

What is section 194-ib of income tax?

What is Section 194-IB? If an individual or a HUF is responsible for paying to a resident any income by way of rent exceeding Rs. 50,000 for a month or part of a month during the previous year, shall deduct an amount equal to 5% of such income as income-tax thereon.

What is rent under TDs section 194i?

The rent under this section broadly includes house rent, machine rent, building rent, office rent, furniture rent etc. This section was introduced to bring rent under the ambit of TDS provisions as rent is a substantial source of income in India, which was escaping the tax net. Who has the need to deduct TDS u/s 194I?

What is the difference between TDS 194i and 194ib?

Section 194I relates to TDS on Rent Section 194IB relates to TDS on Payment of Rent by Certain Individuals or HUF Section 194IC relates to TDS on Payment Made Under Specified Agreement

What is form 194-ib and form 16C?

Just like 194-IB made its debut this year, alongside Form 16C also came into existence. A Form 16C is simply a TDS certificate similar to Form 16 & 16A. This certificate is issued to the payee when TDS u/s 194-IB is deducted. It acts as a proof for payee that TDS has been deposited on his behalf to the government.