Following are certain scenarios where the TDS under Section 194i is not deductible:
- No tax or TDS is deducted on the amount paid as rent if such rent credited or paid or to be paid during the financial year to the landlord or lessee or payee does not exceed Rs.1.80 lacs.
TDS deduction is not required under Section 194i of the Income Tax Act if the tenant is an individual or HUF and if:
- The individual or HUF is not carrying any business or profession.
- When in the previous year the individual or HUF was not liable for tax audit.
- In case of a film distributor and a film theater owner the proceeds that are received would not attract TDS as neither the film theater owner rents out the theater to showcase the film nor is the film distributor the tenant. This business is composite in nature so the proceeds generated are out of the scope of TDS.
- No tax is required to be deducted if the amount is paid to the government agency.