194 IB, a new topic, which we have to discuss today in our
lecture, sir.
It is a topic related to rent. The last topic related to
rent was 194 IB.
The last topic was 194 IB.
In that, we discussed which people were applicable for this
section.
Which people were responsible for deducting TDS.
In that case, it was any person.
Remember, any person means company, firm, LLP.
And those individual HUFs, if you remember, or you can
revise the notes, those individual HUFs whose gross
receipts were more than 1 crore or 50 lakhs or turnover was
last year.
Remember, it was in 194 IB.
Okay sir, no problem.
If they would have paid more than 2,40,000, then they would
have been responsible for deducting TDS.
But sir, what about those people whose income is less than
1 crore, whose gross receipts are less than 50 lakhs, what
should they do in that case?
Won't they deduct TDS?
If there is a provision that those people whose income is
less than 1 crore or 50 lakhs should not deduct TDS, think
about its effect.
Those people whose income is more than 1 crore or 50 lakhs
should deduct TDS.
Agreed? Do you understand this point?
Now, I am saying that if those people whose income is less
than 1 crore or 50 lakhs should not deduct TDS, then sir,
the person who is giving his plant and machinery on rent,
or is giving his land and building or furniture and fixture
on rent, won't he catch such people whose gross receipts
are less than 1 crore or 50 lakhs or turnover?
Think about it.
The person whose turnover is more than 1 crore or 50 lakhs
will be responsible for deducting TDS, when he will pay the
rent.
He will pay the rent but he will deduct TDS.
But the person whose income is less than 1 crore or 50
lakhs will pay the rent but won't deduct TDS.
Sir, the person who owns the house will search for such
people.
He will search for such people whose income is less than 1
crore.
What will happen with him?
There will be a discrimination in the country.
Those who earn more than 1 crore or 50 lakhs will not get
the property.
They will go to take it.
Something on rent.
The owner of that property will say, if I give you this
thing on rent, will you deduct my TDS?
It is better that I give it to such a person who will pay
the rent and won't deduct my TDS.
Sir, there is a problem.
There is a problem.
What should we do in this case?
Every problem brings a solution with it.
In mathematics, we have learnt that every problem has a
solution.
Have you ever read in maths that there is a problem and
there is no solution for it?
In this world, there is an answer to every question.
There is a solution to every problem.
You just need an eye to find that logic.
Everything is here.
All the answers are here.
Open your eyes and see, Arjun.
This is what Lord Krishna has said in Srimad Bhagavad Gita.
All the answers are here.
You just need an eye to find it.
Sir, the problem is that the income is less than 1 crore
and 50 lakhs.
And TDS is not being deducted.
So, sir, in this case, the government said, if there is
such a problem, I am your one and only Nirmala Tai.
I am not taking the full name.
You understand it yourself.
I am the one and only Nirmala Tai.
And you know how smart I am.
I am bringing a section 194ib.
And under this section, I am telling you that if your
income is less than 1 crore and 50 lakhs last year, and if
you pay rent above 50,000 per month, then, sir, you will
have the responsibility that you will have to deduct TDS
and pay your rent.
And if you deduct TDS, how much will you deduct?
You will deduct 5% of the rental amount.
First, absorb this much.
What does 194ib say?
It says that your rent is above 50,000
and your income is less than 1 crore and 50 lakhs.
You will have to deduct TDS at a rate of 5%.
But when do you have to deduct this TDS?
When do you have to deduct this TDS?
At the time of credit or payment?
Sir, this section is a little different.
It is a little different.
It does not cast a responsibility on you every month.
It says that it is a simple thing.
When you are paying rent for the last month, that is, for 3
years, or for example, in the case of properties, a lease
lasts for 11 months.
You have taken a house on a lease for 11 months.
You keep paying rent for 10 months.
There is no problem.
When you pay rent for the 11th month, when you pay rent for
the 11th month, you will deduct your TDS from the rent for
the 11th month.
At the time of credit of the rent for the 11th month or at
the time of payment of the rent for the 11th month,
whichever is earlier.
But which month is this?
This is the last month.
Last month of the tenancy.
You have to deduct your TDS from the last month's rent.
You do not have to deduct TDS every month.
Sir, why is this discrimination happening?
Why is this discrimination happening?
In 194i, TDS was deducted every month.
At the time of credit or at the time of payment, whichever
is earlier.
194i used to say this.
What is the problem here?
Why is the government being so kind here?
Why is Nirmala Tai so kind?
The question is worth 1 crore rupees.
Sir, when I told you that there is an answer to every
question, the question is worth 1 crore rupees, the answer
is worth 1 crore rupees.
And the answer is that those who are earning less than 1
crore or 50 lakhs, those people are also included in it
whose annual income is of 10 lakhs, 9 lakhs, 8 lakhs, 11
lakhs.
Those people are also included.
Absolutely included, sir.
When those people are also included there,
then a common man will have to pay tax every month and he
will have to deposit every month.
Keep him away from that hassle.
Don't put the burden of so many compliances on his weak
shoulders.
Similarly, his income is below 1 crore or 50 lakhs.
On top of that, he will get stuck in these things.
He will hire a CA and give his expenses.
His remaining income will also be finished.
This is why the government has said to make compliance a
little easier here for those people who have a 1994 I.B.
Let's talk a little about convenience.
They have to deduct TDS on the rent.
They will deduct their TDS from the last month's rent.
Yes, but keep in mind the amount of TDS because the TDS of
many months has to be deducted from the last month.
Sometimes it happens that the amount of TDS is Rs.
1 lakh and your rent is Rs.
In that case, whatever the TDS is, it should not go above
the rent at any cost.
Keep this in mind.
This is what I wanted to give you.
Now I need your ears because now I will show you some
things.
Come to the screen with me.
Let's put up a reading.
Sir, did you say poetry?
Poetry was left in the middle.
It was left in the middle because
I was not able to get anything beyond it.
That's why it was left in the middle.
Come on.
And let me tell you that we have not opened any poetry.
You have not come to the class of poetry.
You have come to the class of TDS.
Okay, come on.
1994 I.B.
It talks about 5%, but for whom does it talk?
Any person being individual HUF other than the individual
whose total sales have exceeded Rs.
1 crore.
Apart from that, the rest of the individuals have to be
deducted at a rate of 5%.
And if the rent is above Rs.
50,000, then this provision applies.
20,000, 30,000, 35,000, 40,000, 45,000,
Rs. 59,900, till Rs.
59,999, my dear, this provision does not apply.
A loophole has appeared in front of you.
If tomorrow, if tomorrow, you take a property on rent whose
rent is Rs.
50,000 or Rs.
51,000, you go and tell your landlord that if you do not
want to deduct TDS, then quietly fix your rent at Rs.
Car no.
3, platform no.
4 credit of such rent for the last month of the year or
last month of the tenancy as the case may be to the account
of the payee or at the time of payment, whichever is
earlier.
You don't need to take a tax deduction account number, your
PAN number will do your job.
We don't want to trouble people.
And this deduction should not be more than the last month's
rent at any cost.
Let's cover the question.
He says that there is a rent of Rs. 55,000.
I have taken the property on rent on June 2022.
I have taken the property on rent on June.
And from June to 31st March, let's talk about the financial
year.
How many months are there?
June, July, August, September, October, November, December,
January, February, March.
10 months are there.
Rs. 55,000 multiplied by 10 months.
It becomes Rs. 55,000 multiplied by 10.
Rs. 55,000 multiplied by 10 is Rs. 5.5 lakhs.
The rent of Rs. 5.5 lakhs is paid.
Take out 5% of Rs. 5.5 lakhs.
The answer will be Rs. 27,500.
You have to deduct TDS from the last month's rent of March.
You don't have to deduct it in the first half of the month,
not in the 9th month.
In the 10th month, 5% of your TDS will be deducted.
The answer is that the rent of Rs. 5.5 lakhs is more than
Rs. 50,000.
So, you will have to deduct 5% of TDS.
Rs. 27,500.
And the question is, suppose the property is vacated on
31st December.
So, the simple thing is to pay the rent from June to
December.
You have to deduct 5% of that.
How much will you get?
You will get Rs. 19,250.
Rs. 19,250 is your TDS.
The rent has to be deducted by the landlord.
Here, the tenant gets a power.
He always considers himself to be down, poor, helpless.
But he gets a power here.
Look, your TDS is in my hands.
Whatever rent I give you, I will deduct TDS.
It is a responsibility.
But try to keep this in mind.
If an incident like this happens to you in real life.
Pay the rent up to Rs. 59,999.
Don't let the figure of Rs. 50,000 come.
Okay, friends?
Is this point clear?
Let's move ahead.
There is a small section.
Cover it with this.
194IC.
I see you, darling.
194IC.
What does it say?
Payment under specified agreement.
It is a very common thing.
Try to understand what it is.
We are talking about joint development agreement.
Sir, this joint development agreement seems very familiar.
It seems very familiar.
I have been taught about joint development agreement.
In their chapter on capital.
Let me revise it.
I know you must have studied it at home.
Come, let's see what it was.
It was...
I had a plot.
I had a plot of Rs. 500.
Okay? I used to live alone in this plot.
I used to sleep here comfortably.
I had a cow and buffalo.
My life was going well.
One day, a builder saw my plot.
The builder came to me.
He said,
Gupta, it is a property worth Rs. 500.
It is a very good property.
I have an offer for you.
The offer is,
I will put 5 flats on this plot.
1, 2, 3, 4 and 5.
Okay? I will put 5 flats.
If I put 5 flats,
I will keep 2 flats myself.
Because when I am doing construction,
I have to pay for it.
I will keep 2 flats myself.
I will give you 3 flats.
2 flats for me and 3 flats for you.
Apart from these 3 flats,
I am giving you 3 flats.
Apart from this, I will give you another Rs. 1 crore.
Brother, it is my land.
Earlier, I had a plot worth Rs. 500.
It was my only land.
I used to do anything on that land.
I used to run from here to there.
I used to run.
But now, I don't have land.
I have 5 flats on that land.
Now, 5 families will come and stay there.
The land is gone.
I have 5 flats.
In return, he has given me 3 flats.
And Rs. 1 crore separately.
Keep your hand on your heart and put weight on your mind.
Tell me, these 3 flats and Rs.
1 crore, is it my income?
Yes or No?
Answer is,
Yes.
What is this, brother?
This is my income.
And when it is my income, does it have an income tax?
It should.
I will pay the tax next year.
But what is the government?
Greed.
What does the government say?
The government will tell the builder, when you will pay Mr.
Gupta, then only deduct the TDS.
The builder will say, why so?
He is not a non-resident.
He will run away.
He will not come back.
He is not a non-resident.
He is a chartered accountant.
He will issue such a provision within a year, that he will
save the tax legally and we will not be able to do anything.
He will save the tax legally.
He is a very clever person.
The builder will say, what should I do now?
Nirmala Tai says, when you will pay, what should I deduct
from the 3-flat payment?
Till now, we were deducting whatever income I give to
someone,
I deduct some money from it and deposit the money to the
government.
Now you are saying, there are 3 flats, will the TDS be
deducted from it or not?
What should I deduct from the 3 flats?
Should I break the windows of the 3 flats and deposit the
money in the government's account?
Should I break the doors of the 3 flats?
Should I cut the walls of the 3 flats and say, this is the
wall of TDS, you can go and break it.
This is your income, this is the wall of a flat, your name
is TDS.
The point of TDS in this will be deducted only on the
amount of 1 crore.
TDS will be deducted on this amount.
And how much will it be deducted?
It will be deducted on the rate of 10%.
The builder, when he will give me 3 flats, when he will pay
me, he will deduct 10% TDS and pay me.
I will receive 90 lakh rupees.
This is called a joint development agreement.
Nowadays, you will see a lot of builder floors.
Sir, those builder floors are nothing.
It is a joint development agreement.
The one who has the land, he is given 1-2 flats, he is
given some cash, he is given a flat on the land.
Look at this builder floor.
This is the same joint development agreement.
There must have been some land here in some time.
The builder came and made an agreement that give me 2
flats, give me 2 flats and keep some cash.
This is the same thing.
Okay, sir? Shall we move ahead?
What is applicability?
It casts responsibility on any person who is responsible
for paying to the resident any sum by way of consideration,
not being consideration in kind.
It is not applicable on a flat.
You cannot deduct TDS on 3 flats.
How can I deduct it?
Should I break the window and give it to you?
This is not possible.
What is the simple thing?
Consideration which is not in kind.
Consideration in cash.
Your TDS will be deducted on 1 crore rupees.
At the time of credit or at the time of payment, whichever
is earlier.
It is a simple thing.
Specified agreement.
Friends, we have covered 2 topics today.
194B and 194IC.
Very interesting topics.
Thank you very much for your support.
I will never forget this favor.
Thank you very much.
Bye.
Thank you very much.