Yes, friends, how are you? Welcome to our new, very new,
very fresh, very amazing lecture.
Today we will discuss about TDS and Rent.
Till now whatever we discussed, whatever topics were there
in TDS, we covered 194C, 194H, 194D, 194G.
All these letters were there.
Sir, a very amazing section, 194I.
What is 194I? 194I, I, I, I, your girlfriend I, you didn't
even give me tea and you didn't even feel ashamed.
We used to play something like this in childhood.
Sir, why are you reminding me?
Son, what else is there in life other than laughing?
If you cry, your whole life will pass.
It is said that everyone comes crying.
The one who goes laughing, in the sense of truth, will be
called the Sikander of destiny.
Work happily, enjoy life happily.
Watch lectures happily, what else is there in life?
Come on, come on.
This is the provision of TDS on rent.
Who pays the rent?
The tenant is paying.
Who is paying?
The landlord is paying.
Which income will be considered in the hands of the
landlord?
Remember, do you remember the chapter on house property?
What is the rent in the hands of the landlord?
It is his income.
So when he has income, what will he have to pay?
Income tax.
But when will he have to pay?
In the next year.
But in this case, in this case, the government is getting a
little greedy.
They are saying that you will deposit your income tax on
the rent in the next year.
Tell your tenant that when he is paying you rent, at the
same time, he should run his TDS on that payment.
What will happen with that?
Whatever income tax is made on your rent, a percentage of
it, your tenant will deposit it in your income tax account.
This is the point.
It is a simple point.
The landlord's income is his rental income.
He has to pay the income tax on that income in the next
year.
But when will the TDS be deducted?
In the next year.
Who generally deducts the TDS?
The payer.
Who is paying?
In this case, who is paying?
Our tenant is paying.
Okay? At what rate?
How much?
Let's discuss this.
Section says that if you have a rent of Rs.
2,40,000, then we do not expect any liability of TDS from
you.
We are not liable for any TDS.
If you have a rent of Rs.
2,40,000 for the whole year, then no TDS provision is
applicable to you.
But if you have a rent of Rs.
2,40,000, then in that case,
TDS provisions will be applicable to you.
TDS will be deducted from your rent.
At what rate will it be deducted?
There are two rates in the market.
One is 2% and the other is 10%.
This is a plant and machinery.
You have rented it.
You have rented the plant and machinery.
In that case, the rate is 2%.
And if it is a land and building, like a normal property,
in that case, you have to deduct 10% TDS.
Who will deduct it?
The one who is paying the rent.
Who pays the rent?
The tenant.
So, the tenant who is paying the rent, and the rent is
above Rs.
2,40,000, then the rate of 2% and 10% will be applicable to
you.
It is Rs. 2,40,000.
Now, the limit of Rs.
2,40,000, the limit of Rs.
2,40,000, can a loophole be deducted from it?
The limit of Rs.
2,40,000, can a loophole be deducted from it?
Sir, how will you deduct a loophole from it?
Sir, how will you deduct a loophole from a limit of Rs.
Sir, please try to understand its loophole.
Please try to understand its loophole.
I am saying, enter two contracts from the same party.
Like, if you have rented the plant and machinery from the
same person, and you have also rented the house from the
same person, then enter two contracts.
Enter one contract for Rs. 1,50,000.
Enter another contract for Rs. 1,50,000.
Now, it is Rs. 1,50,000.
In total, Rs. 3,00,000 will be rented to one party.
Rs. 3,00,000 will be rented to one party in this case.
Whereas, Rs. 2,40,000 is more than Rs. 2,50,000.
Sir, the whole world can do this.
The thing you are saying, that if you have a contract with
the same party, then bifurcate the amount of the contract.
Show that you have rented the plant and machinery, and that
you have rented the land and building.
Can you show these two things?
In this case, the government will not incur a lot of loss.
The government will not say, that what are you doing?
We had prescribed a limit of Rs. 2,40,000.
We had considered you to be a sensible person.
We had told you to take a monthly rent of Rs. 20,000.
No problem.
If you go above that, the TDS will be deducted.
But you again committed theft.
The limit of Rs.
2,40,000, so that it does not breach, you entered into two
different contracts.
In that case, the government said, that if you do such a
thing, that you have a contract with the same party, you
have a contract with the same party,
you have a contract with the same party,
and you have done it for different things, different for
plant and machinery, and different for land and building,
so in that case, the limit of Rs.
2,40,000 will not be seen separately.
If you have a contract with a single party, with a single
party, in that case, this limit will be seen for both Rs.
Irrespective of whether you take plant and machinery or you
take land and building.
In this case, this limit, this has to be combined.
So this will come to Rs. 3,00,000.
Now tell me, now tell me, will the TDS be deducted or not?
It will be deducted.
And how will it be deducted?
If Rs.
1,50,000 is on plant and machinery, then it will be
deducted by 2%.
And Rs.
1,50,000 on land and building, it will be deducted by 10%.
Sir, the government is 10 times smarter than you.
The person who breaks the law, the person who makes up
stories, more than that, more than the stories, the end is
set by the government.
There was a limit of Rs. 2,40,000.
You thought, let's make two contracts for Rs.
1,50,000 with the same party.
Sir, you are stuck here.
You contacted with the same party.
Rs. 1,50,000.
You are stuck here.
It is seen that you are contacting with the same party.
Sir, in that case, if you contact with the same party, then
different contracts will be considered as a single
contract, a single agreement.
And if that single agreement is worth more than Rs.
2,40,000, then in that case, the TDS will be deducted.
Yes, in this, only one loophole can come out.
Now don't tell anyone.
This is personal.
Keep your ears here.
I am explaining this with my ears.
What I am saying is, you can do this.
This Rs.
1,50,000, give it to the landlord, the landlord's wife.
And give this Rs. 1,50,000 to the same person.
Different contracts have been made.
Now, different contracts have been made.
Not a single person is getting it.
Different contracts have been made.
When different contracts have been made, then in this case,
when there is a contract with two different parties,
one contract is with his wife, one contract is with that
person, one has a payment of Rs.
1,50,000, the other has a payment of Rs.
1,50,000, one has a payment of plant and machinery, the
other has a payment of land and building, then how will you
prove that the limit of Rs.
2,40,000 is applicable for him as a single contract?
There is no single agreement here.
Sir, will you play at this place?
Can you survive at this place?
In this case, if you have contracted with two different
parties, then you will survive.
A contract with Rs.
1,50,000 from a different party, and a contract with Rs.
1,50,000 from another party.
There is a limit of Rs.
2,40,000 from a single party, irrespective of which asset
you take.
And if there are different parties, then there is a limit
of Rs.
2,40,000 from different parties.
This is the point.
There is a property.
There are two joint owners of that property.
There are joint owners.
It is a very common thing.
You build a house.
First floor, second floor, third floor.
It has three owners.
Now those three owners have rented that property.
You are a joint owner.
Now this limit of Rs.
will be seen separately for each owner
or will it be seen on a combined basis?
Think about it and give an answer.
The limit of Rs.
2,40,000 will be seen separately for each joint owner or
will it be seen on a single basis?
In this case also, the government has given a benefit.
The government is saying that the limit of Rs.
2,40,000 should also be seen separately.
This is the crux of our discussion.
that if it's a single person's contract, it's a limit of
240 be it any assets, be it plant and machinery or land and
building but if you're contracting with a single party,
it's a limit of 240 but if you're contracting with
different parties then the limit of 240 should be seen
separately for each party this was the point
this was the point that I wanted to explain to you
let's read it
come 194 I any person other than individual HUF
it says that other than individual HUF if any person pays
the rent means apart from individual HUF, if it's a company
if it's a partnership firm if it's an association of
persons, if it's an LLP
if it's a charitable trust
it says that apart from individual HUF, anyone can pay so
sir, isn't there a cover for individual HUF?
isn't there a cover for individual HUF? means, if
individual HUF pays rent then don't we have to pay TDS?
don't we have to pay TDS?
sir, in that case, the government says that the
responsibility of paying TDS if you're an individual HUF
then we'll put that responsibility on your shoulders when
your turnover in the last year is more than 1 crore or
gross receipts is more than 50 lakhs
as simple as that
either your turnover is more than 1 crore in the last year
or your gross receipts are more than 50 lakhs in the last
year then in that case, you'll have the responsibility of
paying TDS there's no company or firm in any person come
here any person other than individual HUF who is responsible
for paying to resident any income by way of rent then he'll
pay TDS of 2% in the case of plant, machine, equipment and
10% in the case of rental in the case of rent for use of
land and building, factory etc.
of 10% and that 1 crore and 50 lakhs comes here and when do
we have to pay this? at the time of payment or at the time
of credit, whichever is earlier
simple no problem, sir ok, this was the basic point further
points are not that practical in real life there are case
laws etc.
that's why I'm not even covering them they are just case
laws you can read them, you'll understand
I'm not covering case laws according to every situation,
there's a different case law how much will you read? we
covered the point of rent today limit of 2,40,000 rupees
and limit of TDS limit of 2,40,000 rupees and limit if
you're contracting with a single party but if you're
contracting with different parties then in that case, limit
of 2,40,000 rupees will be seen separately for each party
there are two rates in the market if it's plant and
machinery, then TDS will be deducted according to
whatever rent you'll pay from that suppose you're paying
rent of 1 lakh not 1 lakh because there's a limit of
2,40,000 if you're paying rent of 10 lakhs then deduct 2%
of TDS and pay rent of 9,80,000 and deposit 20,000 rupees
to the other party i.e.
to the landlord in the account of income tax there's
another rate of 10% in case of land and building whatever
payment you'll do after deducting 10% of TDS you'll pay
your party at the time of credit deduction or at the time
of payment, whichever is this is the point
ok friends thank you very much