Section 194IB TDS on Rent of Immovable propery

Payment of rent by certain individuals or Hindu undivided family.

Section: 194-IB.

Payer: Any person, being an individual or a Hindu undivided family (other than those Covered under section 194-I).

Payee: Any Resident person

Nature of Payment: Rent of Immovable Property

TDS Rate: 5%

Timing of Deduction: At the time of credit of rent, for the last month of the previous year or the last month of tenancy, if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

Note:

• No TDS if Rent is upto Rs 50,000 per month or part of the month.
• The provisions of section 203A (requirement of obtaining TAN ) shall not apply to a person required to deduct tax in accordance with the provisions of this section.
• Deduction not to exceed rent for last month.
• In a case where the tax is required to be deducted as per the provisions of section 206AA, such deduction shall not exceed the amount of rent payable for the last month of the previous year or the last month of the tenancy, as the case may be.

Explanation.—For the purposes of this section, "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or building or both.

Source " income tax india"

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