Sir, I have taken shop on rent previous month @ 30,000/- monthly in delhi . Pls. advice tds deduction concept on the same ? Whether I require TAN No. for deduction or not ? As i am running a boutique as a sole proprietorship .
Hi,
- As you are and Individual and if you were being audited during the previous year u/s 44AB then you are liable to deduct TDS @10% as the aggregate rent during the year exceeds Rs.1,80,000/-. For tax deduction and deposit, you need to obtain TAN.
Thanks
Since you are a sole proprietor you only need to deduct TDS if your turnover exceeds 1 crore during the financial year otherwise you are not required to deduct TDS.
If you need any consultation in income tax or TDS do let me know.
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Thank you
Hi
If you are liable to tax audit under section 44AB, you need to deduct TDS@10% under section 194I. If there's a liability to deduct TDS then only you require a TAN.
However, if you're not liable to tax audit, no TDS- no TAN.
Dear Sir,
Hope you are doing well !!
individuals who are subject to tax audit and aggregate of the amount of rent credited or paid or likely to be credited or paid during the financial year exceeds Rs. 2,40,000/- are under an obligation to deduct the tax at source.
TDS threshold for deduction of tax on rent is increased from Rs. 1,80,000 to Rs. 2,40,000 for FY2019-20.
TAN is mandatory.
Hi
If your business covered under Tax audit then you have to deduct Tds @10% under sec 194I,as you are paying more than 240000 per year as rent.
And if not covered under 194I,the TDS to be deducted under sec 194-IB,Since Rent payment is also less than cap of 50000 per month ,so NO TDS to be done in this case.
Hope it helps
