Property Tax

Legal Eagle (Querist) 31 March 2009 This query is : Resolved
I am an a Licensee and am paying my licence fee after deducting tax as per Sec. 194 (I) @ 17%.

Is there any change in the percentage of deduction or is it still 17%

Please reply, urgently, as I have to make the payment for the month of April by 3rd April, 2009.

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Guest (Expert) 04 April 2009

how did you get this 17%, 194I is stating TDS at either 10% or 20%. Where did this 17% no where mwntioned in income tax act, come about.

Hiralal Das (Expert) 05 April 2009
Thanks to Kotresh M G.

Legal Eagle (Querist) 06 April 2009
If rent exceeds Rs. 10 lakhs then TDS is to be 17%. If below Rs. 10 lakhs then 15.45%. This is as per S. 194 I.

I just want to know if there is any amendment to the same.

A V Vishal (Expert) 08 April 2009
Dear Kashmira:
A small amendment to your statement, It is not 17% if the rent exceeds 10 lakhs, but the general principle is, if an individual's net income exceeds 10 lakhs, then he is liable to pay surcharge @ 10%. The net tax payable hence works out to 17% after 3% education cess. You are absolutely correct. The rate of TDS for individuals & HUF is 15% and all other legal entities is 20%.

Thus 194 I reads as follows:
12[(a) ten per cent for the use of any machinery or plant or equipment;

(b) fifteen per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings where the payee is an individual or a Hindu undivided family; and

(c) twenty per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings where the payee is a person other than an individual or a Hindu undivided family:]