Applicability of tds

This query is : Resolved

kunal (Querist)
Follow

28 January 2014 ABC LTD. paying salary of Rs. 12 laks to one of their director and in addition company also paid rent of Rs. 1 lakh p.a.

company deducted TDS on salary but not on Rent

please tell is company right in doing so?

in the above case contention of the assessing officer is that TDS was to be deducted on rent payment since Salary was in tax bracket?

@VaibhavJ

@VaibhavJ (Expert)
Follow

28 January 2014 Hi

Have you taken any property on rent from him? If yes then:

Salary wud be subject to 192B & rent payment would be subject to 194I limit.

Make sure you have separate agreement for the rent payment.

If no property is taken on rent then amount paid will be taxable u/s 192B.

Thx

Message likes : 1 times

kunal

kunal (Querist)
Follow

28 January 2014 yes different property was taken on rent under separate rent agreement

is tds applicable on rent payment(Rs. 1,80,000) ?

Upgrade to CAclubindia Pro. Subscribe Now!

@VaibhavJ

@VaibhavJ (Expert)
Follow

28 January 2014 No TDS is applicable.

Thx

Message likes : 1 times