We are find TDS Rate on rent?

Question

We are find TDS Rate on rent?

Answer 1

Section 194-I of the Income Tax Act, 1961 covers TDS rates on rent.

If the rent is for Plant and Machinery hired out, then, TDS will be @ 10%.

If the rent is for buildings and lands or both paid to a resident individual or HUF, then the rate will be 15%.

If the rent is for buildings and lands or both paid to a party other than a resident individual or HUF, then the TDS rate will be 20%.

However, please note that NO TDS will be necessary if the gross rent paid during a financial year is Rs. 120000 or less.

Also please note that these rates are applicable only for payments of rent to a RESIDENT individual or HUF.  If the payment is made to a non resident (as per the Incometax Act, 1961), then, there are different rates (such as 30% or such rate as agreed upon between two countries as per DTAA.

For further education on this subject, please, visit www.incometaxindia.gov.in, click on Incometax Act and go to Section 194-I.

Answer 2

For the current TDS rates in India, and more information about TDS deduction and filing, read http://mytaxes.in/index.php?topic=8.0