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Asked by Rashmi on :Feb. 05, 2019

Dear Experts.Our company is paying rent of Rs. 20…

Dear Experts.Our company is paying rent of Rs. 200000. Is it necessary to deduct TDS?

Dear Experts.

Our company is paying rent of Rs. 200000. Is it necessary to deduct TDS?

0

Jeeba Feb. 05, 2019

Yes, your company should deduct the TDS while making payment of rent.

Section 194I states that every person (except individual and HUF not liable for tax audit) who is paying rent exceeding Rs. 1,80,000 shall be liable to deduct TDS.

However, Interim budget 2019 has increased this limit to Rs. 240000. So, from 1st April, you have to deduct TDS on rent paymment only if such expenses exceeds Rs. 240000 in a financial year.

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