Finance Act 2024: TDS on all rent not reduced to 2%
With the beginning of October 2024, TDS rates for various goods and services have changed. In the Budget 2024, many changes in the Tax Deducted at Source (TDS) rates were proposed and asked to be implemented with an effective date.
Currently, there is a misconception going on related to TDS. This misconception is that TDS on all rent is reduced to 2%.
CA Mayur J Sondagar talked about this matter and notified clarification.
Clarification
- Kindly note that the TDS rate was reduced for section 194IB and not for section 194-I(b).
- TDS Rate u/s 194-I(b) is 10% only and not reduced to 2%.
- Section 194-I has a threshold limit of Rs.2,40,000 per annum.
- Section 194-IB has a threshold limit of Rs.50,000 per month.
