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Tds on rent

B S Dwarakanath (manager) (81 Points)

18 May 2014

Dear Sir

I have given my house for a rent of Rs 20,000/- per month to a family.Is TDS applicable to me?

Thanks in advance

Dwarakanath

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9 Replies

CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114215 Points)
Replied 18 May 2014

If Tax Audit is not applicable to you then you are not required to deduct TDS.

pranjala (student) (132 Points)
Replied 18 May 2014

Its depends on your payer status. If your tenant is indvidual/HUF who is not subject to tax audit, then he need not deduct Tax at source irrespective of the amount of rent. However if the payer is any other person except as said above he should deduct tax at source as the rent p.a exceeds 1,80,000 @ 10% rate

pranjala (student) (132 Points)
Replied 18 May 2014

Sanjay , tax audit applicabilty should be checked for payer na. Not payee

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 18 May 2014

yes, tax audit applicability shud be checked for payer/deductor.

Piyush Mittal (Article Assistant) (63 Points)
Replied 19 May 2014

It depends upon your tenant status..if he is other than individual and huf then he will deduct tds otherwise not..but if he is individual or huf and tax audit applicable on him then he will deduct tds.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 19 May 2014

See TDS provision would be applicable only if payer/ deductor claim that rent expenditure in his profit and loss account subject to that rent exceeds 180000/- in a year.

But it seems that you have given the house for residential purpose to a family HENCE in this case no TDS provision applicale whether deductor/ payer covered under tax audit or not

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Rupesh Soni (Taxation Consultant & CA final student) (493 Points)
Replied 19 May 2014

You letout ur house to a family i.e Payer's personal exp-Rent definately No tds has been deducted by payer as he debited Rent to his Capital acc as a Household exp..so No tds provision applid on It but You must shw HP INCOME AFTR DED 30% std deduction .....