3.13. PAYMENT OF RENT [ SECTION 194 I ]
The Provisions of section 194 I are given below---
Who is the taxpayer |
Any person paying Rent ( not being an individual or a Hindu Undivided Family whose books of accounts are not required to be audited u/s 44AB ) |
Who is the recipient |
A resident person |
Payment covered |
Rent |
At what time tax has to be deducted at source |
At the time of payment or at the time of credit, whichever is earlier. |
Maximum amount which can be paid without Tax Deduction |
If the amount of payment is Rs.1,20,000 or less than Rs.1,20,000 |
Rate of tax deducted at source |
10% - for Rent of Machinery or Plant or Equipment
for Rent of any Land or Building or Fittings – 15% for Individual or HUF & 20% for any other person. |
Is it possible to get the payment without tax deduction or with lower tax deduction |
The recipient can make an application in Form No.13 to the Assessing Officer to get a certificate of lower tax deduction or no tax deduction. |
Note : Rate of Tax includes .. Tax plus surcharges, education cess and secondary higher education cess. |
