State the rate of tax deductible or collectible at source under the provisions of the Income-tax Act, 1961 in respect of the following transactions: Monthly rent paid by a partnership firm to a resident partner ₹ 1,90,00
CS Executive · Tax Laws · PYQS · December 2018
State the rate of tax deductible or collectible at source under the provisions of the Income-tax Act, 1961 in respect of the following transactions: Monthly rent paid by a partnership firm to a resident partner ₹ 1,90,000.
Answer & Explanation:
In case of partnership firm pays rent exceeding ₹1.80 lakhs, it is liable for tax deduction u/s 194I of the Income Tax Act, 1961 @ 10% irrespective of the fact that the payment is made to partner or outsider. In the present situation the payment made is ₹1,90,000 that exceeds the threshold limit i.e. ₹1,80,000, therefore TDS provision u/s 194 I of the Income Tax Act, 1961 is attracted and is liable for TDS @ 10%.
Topics: Income Tax Act, 1961
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