Paying rent has now become an inevitable part of our lives. This payment may relate to the use of personal spaces, assets or commercial equipment, etc. As all these activities have increased significantly in recent times, the government has taken a step to track all these transactions in the Indian economy by placing them under the aegis of TDS provisions by Sec 194I, 194IB and 194IC. The applicable tax rate is 5% if the rent Rs exceeds 50,000 and the lessor`s PAN is made available. Otherwise, if the PAN is not available, the TDS is 20%. Recommended: Simple Guide to TDS Provisions under the Income Tax Act 1961 Read here the full guide to the TDS provisions of the Income Tax Act 1961. In addition, we conclude several topics such as TDS returns, TDS due dates, a tenant`s penalties must deduct the tax once a year and pay it to the government. A challan declaration, Form 26QC, should be used for this payment. In addition, the tenant must provide the lessor with Form 16C, a TDS certificate, as proof of the tax filed. A Tax Withdrawal Account (TAN) number is not required for the transaction. You can download Form 26QC and print it for information purposes. Also, don`t forget to provide the owner with Form 16C as proof of payment of tax. The owner can use it when filing his taxes.
F. No. 370/02/2017-IT (B) – (13/09/2017) – When checking the progress made in the TDS collections, it is indicated that on 31.08.2017, an amount of Rs. 1,65,114 crore under TDS (Minor Head) with a growth rate of 10.44% compared to the corresponding period of the last financial year. It showed a significant drop of 7 percent compared to the last funding. Years: According to the Explanatory Note to Section 194-I, any payment, under any name, under lease, sublease, lease or other agreement or agreement for the use of land or immovable (including factory buildings), as well as furniture, furniture and associated land, whether or not such building is the property of the beneficiary. In addition, the definition of “land or building” would encompass part or part of such land or building. Therefore, section 194-I applies to rent paid solely for the use of part or part of property or immovable.
The joint development contract is an agreement between two people, that is: The owner of the land or building and another person who obtains permission to build a real estate project and, in return, he must give a share to the owner or the payment must be made in cash. . . .