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If an assessee comes under sec.44AB(Tax Audit), is his monthly house rent is crossing the threshold limit for deduction for TDS limit. He is applicable to deduct TDS? If the rent paid on business purpose, I know Sec.194A Applicable. It's monthly house rent is applicable for TDS?


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 11:33

34

Answers (7)

Rent for residential purpose - limit is 50,000 per month


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Apr-21 12:36

194A is for Interest other than "Interest on securities". Section 194I- TDS on Rent. TDS is deductible at the time of credit or payment which ever is earliest. Sec. 194I does not mandate that the tax deduction should be made on a month-to-month basis, if it is credited & paid quarterly, TDS is deducted accordingly. Deduction is not required when the rent is due or paid by an Individual or HUF not carrying on a business which is audited under income tax law. All individuals or HUFs (except those liable to audit under clause a and b of section 44AB) paying monthly rent to a resident in excess of â?¹ 50,000 are liable to deduct TDS under section 194-IB. No tax is required to be deducted if rent due or paid < Rs.2,40,000


sudha reddy

sudha reddy

Moderator

02-Apr-21 12:38

So in my query proprietor is comes under tax audit, so house rent is applicable the amount in excess of Rs.20000?


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 12:46

So in my query proprietor is comes under tax audit, so house rent is applicable the amount in excess of Rs.20000?

If under tax audit, individual has to deduct tax, no limit considered....


sudha reddy

sudha reddy

Moderator

02-Apr-21 12:51

For house rent also, used for personal purpose.


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 13:24

Strictly speaking yes


Suraj Lakhotia

Suraj Lakhotia

Admin

02-Apr-21 14:18

Ok.


BALAMURALI UNNITHAN M S

BALAMURALI UNNITHAN M S

CA Inter

2K+

02-Apr-21 14:21

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