What is Section 194C of Income Tax Act?

According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).

What is 194IB of Income Tax Act?

What does Section 194IB specify? According to Section 194IB, it is mandatory for any person, i.e. individuals / HUF not liable to audit u/s 44AB, to deduct taxes for a rent paid to a resident, exceeding Rs 50,000 per month.

What is Section 194A?

Section 194A deals with deduction of TDS on interest other than interest on securities like Interest on Fixed Deposits,Interest on Loans and Advances other than banks.

What is the limit to deduct TDS US 194C?

What is the limit to deduct TDS u/s 194C? The following is the limit applicable under section 194C to deduct TDS: The amount paid or credit is a single contract that exceeds Rs 30,000. The amount paid or credit during the financial year altogether exceeds Rs 1,00,000.

What is Section 194 and 194A?

Tax is to be deducted under section 194A on interest (other than interest on securities). Tax is to be deducted if the interest is paid to a resident. In this case, the firm has paid interest (other than interest on securities) to a resident and hence, the firm has to deduct tax under section 194A from interest of Rs.

What is 194I A and 194I B?

Section 194I relates to TDS on Rent. Section 194IB relates to TDS on Payment of Rent by Certain Individuals or HUF. Section 194IC relates to TDS on Payment Made Under Specified Agreement. File with us to win your taxes Ready to File! Start Now!

What is Deductees and non company Deductee in TDS challan?

(0020) Company Deductee – if the TDS has been deducted against payment to a Company. (0021) Non-Company Deductees – if the TDS has been deducted against payment to any other person other than a Company (i.e. Individual Sole Proprietor, Partnership Firm, HUF)

What is section 194i of the Income Tax Act?

Section 194I – TDS on Rent As per Section 194I, the word rent can be described as a payment categorised as a lease, sub-lease, tenancy or any agreement to use – land, building, machinery, plant, equipment, furniture, fittings or land adjunct to a building. Regardless of whether the payee owns it or not.

Who can deduct TDs under section 194i of income tax?

Any person (who is not an Individual/HUF) pays to another resident an income by way of rent is required to deduct TDS u/s 194I. But if the Individual/HUF becomes liable to audit u/s 44AB (a) and (b) then he/she is required to deduct TDS under this section.

What is the rate & time of tax deduction u/s 194ic?

What is the rate & time of tax deduction u/s 194IC? The rate of the tax deduction is 10% [7.5% from 14th May 2020 to 31st March 2021 as relief given by the Finance Minister due to coronavirus outbreak] and if the PAN of the receiver is not available then the rate is 20%.

Is it mandatory to pay rent under section 194ib?

According to Section 194IB, it is mandatory for any person, i.e. individuals / HUF not liable to audit u/s 44AB, to deduct taxes for a rent paid to a resident, exceeding Rs 50,000 per month. What does rent mean according to Section 194IB?