Provisions and compliance under Income Tax Act, 1961
Key Points | Section 194-IB | Section 194-I |
Applicability | Applicable to individuals and HUFs not liable to tax audit under Section 44AB of the Income Tax Act. | Applicable to all types of taxpayers, including in individuals, HUFs (Sec 44AB), companies, and others. |
Type of Income | Rental income paid for the use of land, buildings, or both for residential purposes. | Rental income paid for the use of land, building, or both, whether residential or commercial and on Plant, Furniture etc |
Threshold Limit | TDS to be deducted if the monthly rental payment exceeds Rs. 50,000. | TDS to be deducted if the annual rental payment exceeds Rs. 2,40,000. |
Rate of TDS | 5% of the total rental amount. (@2% w.e.f. 01/10/24). | 10% of the total rental amount for land, building and on furniture and 2% on Plant, Machine etc. |
Time of TDS Deduction | Once in the last month of the tenency or at the end of the financial year. | TDS to be deducted at the time of credit of rent to the landlord's account or payment, whichever is earlier. |
TAN Requirement | TAN (Tax Deduction and Collection Account Number) not required for the deductor. (Form 26QC) | TAN is required for the deductor. |
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