|
Disclaimer: The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.
Viewers are advised to verify the content from Government Acts/Rules/Notifications etc. |
Who is required to deduct tax under section 194-IB ?
As per section 194-IB , every Individual and HUF, whose turnover or gross receipt from business or profession doesn't exceed Rs. 1 crore in case of business and Rs. 50 lakhs in case of a profession in the immediately preceding financial year, is required to deduct tax at the rate of 2% from payment of rent.
The tax shall be deducted under this provision even if the individual is not engaged in any business or profession and is just earning a salary or any other income.
When this section is applicable?
Tax is required to be deducted under this provision only if the rent is payable to a person who is a resident of India. The tax shall be deducted if the rent paid or payable exceeds Rs. 50,000 per month or part of the month.
How and when to issue the TDS certificate?
The deductor shall issue a TDS certificate to the assessee in Form 16C within 15 days from due date of furnishing of challan-cum-statement in Form 26QC. This certificate shall be generated and downloaded from the Dept. website.
What are the consequences of failure to issue TDS certificate?
If any person, who is responsible for issue of TDS certificate, fails to issue such certificate, he shall be liable for payment of penalty under section 272A.