02 May 2012
My company is paying rent to a person (one of the co-owner (1st owner)who has authorise by rest of three co-owner to receive rent payment by making power of atorney in his name)for use of property @ Rs. 16000/- p.m..
My question is that, whether we should deduct TDS or rent as all four co-owner has definite share in the property 1/4th share each but rent paid to only one owner.
02 May 2012
If total rent is 16000/- per month then TDS not required to be deducted.
In case of co-owners of a property, the threshold limit for TDS under section 194-I applies to each co-owner
Where property in question leased out to a bank was owned by various co-owners and each owner was having a definite and ascertainable share in property, threshold limit for purpose of deduction of tax at source under section 194-I would apply to each of co-owners separately - CIT v. SENIOR MANAGER SBI[2012] 20 taxmann.com 40 (Allahabad)
Whether this applies to co-owners or payees, because, here number of co-owners are 4 but payee is only 1 owner who has authorise by the rest co-owners to receive payment by issuing POA in his name.
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