Question

Deduction of tax at source under section 1941 is @​

Answer 1

Answer:

What is Section 194I of the Income Tax Act?

Under Section 194I a person (other than Individuals and Hindu Undivided Family) who is paying rent is liable for Tax deduction at source. The tax can be deducted at source when the total amount of rent to be received or paid in a particular financial year is more than Rs. 1,80,000. While Individuals and Hindu Undivided Families who come under the purview of the taxation are also liable for tax deduction at source, the aggregate limit was previously Rs.1,80,000 but now with effect from 1st June 2017 the rule of the payments has changed. Now both Individuals and Hindu Undivided Family are obligated for tax deduction at source at 5% of the rent collected given the rent exceeds Rs 50,000.