BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rs.2, 00, 000
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Rs.3, 40, 000
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Rs.2, 40, 000
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Rs.2, 60, 000
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Detailed explanation-1: -TDS threshold for deduction of tax on rent is Rs 2, 40, 000 for the FY 2022-23 (the threshold limit was Rs. 1, 80, 000 until FY 2018-19). Also, individuals and/or HUFs who are subject to tax audit are under an obligation to deduct the tax at source.
Detailed explanation-2: -What is TDS on rent rate in FY 2022-23 ? Based on Income Tax Act, Section 194-I, the TDS on rent deduction is 10 per cent on any land or building. TDS on rent is applicable only if the paid rental amount exceeds Rs 2, 40, 000 per year.
Detailed explanation-3: -TDS rate applicable on rent The TDS is levied if the rent paid exceeds Rs 2, 40, 000 per year. Individuals and Hindu Undivided Family (HUF) must deduct five percent TDS on rent if the amount exceeds Rs 50, 000 per month.
Detailed explanation-4: -5% of the rent. TDS has to be deducted if the rent for each month or part of the month is more than Rs 50, 000. The payer is required to deduct tax only in the last month of the year or during the last month of tenancy in case the property is vacated during the year.