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TDS on rent payment exceeding Rs. 50k by individuals / HUFs from FY 17-18

  • CBDT notifies operating rules and forms with respect to Sec. 194IB (inserted by Finance Act, 2017)  to provide for TDS on rent payment exceeding Rs. 50,000 for a month by individuals or HUF w.e.f June 1, 2017
  • Notifies new challan-cum-statement in Form No. 26QC to be furnished electronically by the deductor
  • Prescribes 30 days period (from the end of the month in which the deduction is made), for depositing TDS with Government and for furnishing Form 26QC
  • Notifies TDS certificate in Form No. 16C to be furnished to the payee within 15 days from the due date of furnishing Form No. 26QC
  • Amends Rules 30, 31 and 31A (relating to time and mode for – TDS deposit, TDS statements / TDS certificate furnishing)

194-IB. (1) Any person, being an individual or a Hindu undivided family (other than those referred to in the second proviso to section 194-I), responsible for paying to a resident any income by way of rent exceeding fifty thousand rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per cent of such income as income-tax thereon

(2) The income-tax referred to in sub-section (1) shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy, if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier

(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section

(4) In a case where the tax is required to be deducted as per the provisions of section 206AA, such deduction shall not exceed the amount of rent payable for the last month of the previous year or the last month of the tenancy, as the case may be

Explanation.—For the purposes of this section, “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or building or both.