Section 194IB TDS on Personal Rent

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SECTION 194IB TDS ON PERSONAL RENT Section no Description Cut off Normal Rate of TDS Reduced Rate From 14 May 2020 to 31 Mar 2021) 194 IB TDS on Personal Rent 50000 5% 3.75% As Per Section 194IB On Payment of Rent more than 50000 TDS Deducted @ 5% by Tenant This Section is applicable only in cases where TDS 194I is not applicable However Rate Reduced to 3.75% for period 14 May 2020 to 31 Mar 2021 due to lockdown Note Section no Description Cut off Normal Rate of TDS Reduced Rate From 14 May 2020 to 31 Mar 2021) 194 I 240000 10% /2% 194 IB TDS on Personal Rent 50000 5% 3.75% TDS on Rent 7.5%/1.5% teachoo.com RENT PAID FOR PERSONAL PURPOSE BUSINESS PURPORSE Company Partnership Proprietorship Section 194I Applicable 240000 cut off 240000 cut off Last Year Last Year Audit Case 240000 cut off No Audit Case 50000 PM cut off Section 194IB Applicable 50000 PM Cut off Section 194I Applicable Section 194I Applicable Section 194IB Applicable Difference between Section 194I and 194IB Section 194I Section 194IB It is Applicable in Case of Company Partnership Proprietorship (if Last Year Audit) It is not applicable to Company Partnership Proprietorship (if Last Year Audit) It is not applicable in case of Proprietorship Last year (No Audit) Personal Rent of Home It is Applicable in case of Proprietorship Last year (No Audit) Personal Rent teachoo.com Difference between Section 194I and 194IB Section 194I Section 194IB Cut off 240000 per annum Cut off 50000 per month TDS Rate Rent of Normal Case Reduced Rate Land and building, furniture 10% 7.50% Plant and Machinery 2% 1.50% TDS Rate Rent of Normal Case Reduced Rate All Cases 5% 3.75% TDS Deducted as per Rent Agreement (Normally Monthly) TDS Deducted One Time (Normally Annually) teachoo.com Difference between Section 194I and 194IB Section 194I Section 194IB TDS Deducted Monthly TDS Return Filed Quarterly in Form 26Q (31 Days form end of Quarter except Mar) TDS Certificate (Form 16A) TDS Certificate (Form 16C) (15 days from Return Filing Date) TDS Deposit by Challan 281 Common Challan Cum Return (7th of Next month except Mar) Form 26QC ( 30 days from the end of the month in which TDS was deducted (15 days from Return Filing Date) TDS Deducted Normally Annually (No Need to File Challan Return Separately) Section 194I Example Section 194IB Example 01 Apr Rent of 60000 pm for Company Guesthouse Annual Rent=60000*12=720000 It is more than 240000 limit TDS is Deducted under Section 194I 01 Apr Rent of 60000 pm for Personal Office It is more than 50000 pm So TDS is Deducted under Section 194IB TDS Rate =10% TDS Rate =5% Every Month ,TDS Deducted @ 10% on 60000 =6000 Rent Paid Every Month= 60000 6000 =54000 TDS Deducted Annually in March Rent from Apr Feb =60000 pm (without Deducting TDS) In March , Annual TDS Deducte d Rent in March =60000 Annual TDS =60000*5%*12=36000 Rent Paid for March=60000 36000=24000 When is TDS Deducted and Deposited under Section 194IB TDS is Deducted on Example 1 End of Tenancy Agreement or End of Financial year which is earlier Rent Agreement from Apr Mar TDS Deducted on 31 Mar TDS Deposit by 30 Apr TDS Certificate 14 May It is Deposited by Example 2 Rent Agreement from Apr Sep 30th of next Month Form 26QC TDS Deducted on TDS Deposit by TDS Certificate 30 Sep 30 Oct 14 Nov TDS Certificate issued by Example 3 Rent Agreement from Sep 2020 Aug 2021 Sep Mar Apr Aug TDS Deducted on TDS Deposit by TDS Certificate 31 Mar 21 30 Apr 21 15 May 21 31 Aug 21 30 Sep 21 15 Oct 21 15 Days of Return Filing Date in Form 16C TDS is Deducted 2 times TDS is Deducted On End of Financial Year TDS is Deducted On End of Tenancy Agreement teachoo.com