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A comprehensive guide to understand TDS levied on rent paid.
Who is this guide for?
Persons who are having rental income from land, building, plant & Machinery ,furniture & fittings etc.
CBDT issued a circular on 25th June 21 extending some timelines for AY 21-22
(i) The due date to file TDS return for Q4 of the FY 2020-21 is extended from 30th June 21 to 15th July 21.
(ii) The due date to furnish the TDS Certificate to employees in Form No. 16 is extended from 15th July 21 to 31st July 21.
Tax is required to be deducted at source at the time of credit of ‘income by way of rent’ to the account of the payee or at the time of payment, thereof, in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.
|S. No||Nature of Payment||Rates of tax deduction|
|1||Rent of plant and machinery||2%|
|2||Rent of land or building or furniture or fitting||10% (5% if rent exceeding Rs 50,000 / month is paid by individual/HUF who are not liable for tax audit)|
|S. No||Nature of Payment||TDS rate from 14 May 2020 until 31 March 2021|
|1||Rent of plant and machinery||1.5%|
|2||Rent of land or building or furniture or fitting||7.5% (3.75% if rent exceeding Rs 50,000 / month is paid by individual/HUF who are not liable for tax audit)|
On application by the payee in Form 13, if the Assessing Officer is satisfied that this total income justifies no deduction of tax or deduction at a lower rate, he may issue a certificate in Form 15AA to that effect directly to the payer.