Section 194 I – TDS not to apply on lump sum lease premium!

Updated on: 08 Aug, 2023 05:04 PM

CBDT via circular dated 13.10.2016 clarified that lump sum lease premium or one time upfront lease charges ,which are not adjustable against periodic rent paid or payable for acquisition of long-term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of Section 194 I of the Act. Therefore, such payments are not liable for TDS under Section 194 I of the Act.

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CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.