India - Income Tax Act 2010 - Saarc

1.757 CH. XVII - COLLECTION AND RECOVERY - DEDUCTION AT SOURCE S. 194-I69[Rent.70194-I. Any person, not being an individual or a Hindu undivided family, who isresponsible for paying to 71 [a resident] any income by way of rent 72 , shall,at the time of credit of such income to the account of the payee or at the time ofpayment thereof in cash or by the issue of a cheque or draft or by any other mode,whichever is earlier, 73 [deduct income-tax thereon at the rate of—74[(a) two per cent for the use of any machinery or plant or equipment; and(b) ten per cent for the use of any land or building (including factorybuilding) or land appurtenant to a building (including factory building)or furniture or fittings:]]Provided that no deduction shall be made under this section where the amountof such income or, as the case may be, the aggregate of the amounts of suchincome credited or paid or likely to be credited or paid during the financial yearby the aforesaid person to the account of, or to, the payee, does not exceed 74a [onehundred and eighty thousand rupees] :75[Provided further that an individual or a Hindu undivided family, whose totalsales, gross receipts or turnover from the business or profession carried on byhim exceed the monetary limits specified under clause (a) or clause (b) of section44AB during the financial year immediately preceding the financial year inwhich such income by way of rent is credited or paid, shall be liable to deductincome-tax under this section.]69. Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.70. See also Circular No. 699, dated 30-1-1995, Circular No. 715, dated 8-8-1995, CircularNo. 718, dated 22-8-1995, Circular No. 735, dated 30-1-1996, Circular No. 736, dated13-2-1996, Circular No. 5/2001, dated 2-3-2001, Circular No. 5/2002, dated 30-7-2002,Circular No. 12/2002, dated 22-11-2002, Circular No. 1/2008, dated 10-1-2008 and CircularNo. 4/2008, dated 28-4-2008. For details, see Taxmann’s Master Guide to Income-tax Act.See rules 28, 28AA, 28AB, 30, 31, 31A, 31AB, 37 and 37BA and Form Nos. 13, 16A, 26AS and26Q.71. Substituted for “any person” by the Finance Act, 2003, w.e.f. 1-6-2003.72. For the meaning of the term “rent”, see Taxmann’s Direct Taxes Manual, Vol. 3.73. Substituted for “deduct income-tax thereon at the rate of twenty per cent:” by the FinanceAct, 1995, w.e.f. 1-7-1995.74. Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1-10-2009. Prior to its substitution,clauses (a), (b) and (c), as substituted by the Finance Act, 2007, w.e.f. 1-6-2007, read asunder :“(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) orland appurtenant to a building (including factory building) or furniture or fittingswhere 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) orland appurtenant to a building (including factory building) or furniture or fittingswhere the payee is a person other than an individual or a Hindu undivided family:”74a. Substituted for “one hundred and twenty thousand rupees” by the Finance Act, 2010, w.e.f.1-7-2010.75. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002.