Name: Faiz Memon Submitted to: Bela Mam Activity-I TDS applicable to Ledger TY BBA Navrachana University
Here, TDS is not applicable on expense as the amount of payment of rent during the financial year is less than Rs.1,80,000 which is a provision of Sec. 194-I of the Income Tax Act,1961. The provisions are shown on the next page.
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) A resident person Rent of land, building, plant, machinery or furniture At the time of payment or at the time of credit, whichever is earlier. If the amount of payment during a financial year is Rs.1,80,000 or less than Rs.1,80,000
Who is the recipient Payment covered At what time tax has to be deducted at source Maximum amount which can be paid without Tax Deduction
Rent of plant & machinery: 2% Rate of tax deducted at source Rent of land, building or furniture: 10%, tax is deductible on payment/credit.
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.