TMI BlogSection 194-I - TDS on RentX X X X Extracts X X X X X X X X Extracts X X X X ..... ear. Note: No tax deduction shall be made under section 194-I where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in section 10(23FCA), owned directly by such business trust. No TDS on GST included in rent: GST paid by the tenant does not take the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. No TDS on lump sum lease premium paid for acquisition of long term lease: It is clarified that lump sum lease premium , which are not adjustable against rent, are not in the nature of rent u/s 194I. Therefore such payments are not liable for TDS. No deduction of tax s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essence of composite arrangement is for taking premises on rent, tax will be deducted u/s 194-I. The Board has received a number of queries from various persons regarding the application of the aforesaid provision. These queries have been carefully considered by the Board and the following clarifications are issued for the information and guidance of all concerned. Like Warehousing Charges Rent of a part of Building Rent inclusive of municipal tax, ground rent Non refundable deposit. [ Circular No. 718 date 22.08.1995 ] Non applicability of the provisions of Section 194-I to cooling charges paid by the various customers to the owners of cold storages. [ Circular no. 01/2008 date 10.01.2008] Non-Applicability of the provisions of section 194 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion if payee is Government /local authorities - there is no requirement to deduct income-tax at source on income by way of rent if the payee is the Government. In the case of the local authorities and statutory authorities referred to in para 3 of this circular, there will be no requirement to deduct income-tax at source from income by way of rent if the person responsible for paying it is satisfied about their tax-exempt status under clause (20) or (20A) of section 10 on the basis of a certificate to this effect given by the said authorities. [ Circular No. 699 Dated 30/1/1995 ] - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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