Question: What Happens If TDS Is Not Deducted On Rent?

Who pays TDS on rent?

As per Finance Act, 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUFs (Hindu Undivided Family) (other than an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) ….

Is it mandatory to deduct TDS on rent?

TDS @ 10% is required to be deducted in case the Rent paid/ payable during the Financial Year is more than Rs. … Earlier, TDS on Rent was required to be deducted if the Rent paid was more than Rs. 1.8 Lakhs but w.e.f Financial Year 2019-20, this limit has been increased to Rs. 2.4 Lakhs per annum.

What is the percentage of TDS on rent?

10%Tax (TDS) Deduction Rates Rent for land/ building/ furniture/ fittings- 10% TDS on the rent amount paid. Individual/ HUF not liable to tax audit – 5% TDS on the rent paid in cases where more than `50,000 is paid per month as rent.

When TDS is not required to be deducted?

But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited. However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit.

What is the TDS limit for rent?

Rs 2,40,000The person (not being an Individual or HUF) who is responsible for paying of rent is liable to deduct tax at source. TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2020-21. The threshold limit was Rs. 1,80,000 until FY 2018-19.