TDS on rent

3628 views 11 replies

Dear All,

We are paying office rent a sum of24000/- as per rental agreement.

Rental agreement made between building owner Mr X and our office MD Mr  Y

Already we paid rent for the period from Nov'10 to Mar '11 without deduct TDS Bcoz not exceeding 180000/-

Now we going to pay rent a sum of21600/- after deduct TDS @ 10%.

But Mr X ask rent without deduct TDS and split the rent as three parts of names including him. i.e (8000 x 3 Mr.X, Mrs.X & Mr.X's son)

Shall we deduct TDS r not? Pls tell me immediately urgent.

Advance Thanks & Regards

S Sathis kumar

Replies (11)

For splitting the payments, the payees should be the joint owners of the property in the proportion in which they are asking to split. 

 IF THE AGREEMENT STARTED IN NOVEMBER 10 THAN YOU SHOULD NOT DEDUCT TDS AS IT IS ONLY RS 120000 WHICH YOU WILL BE PAYING FOR 5 MONTHS FOR FY 2010-11. BUT FOR FY 2011-12YOU HAVE  TO DEDUCT TDS BCOZ ON RENEWAL OF AGREEMENT THE PAYMENT WILL EXCEED RS 180000 IN A YEAR. YOU CANT BIFUCATE THE RENT IN THREE PARTS AS AGREEMENT IS BTWN MR X AND MR Y ONLY.

If property are in the name of three person and rent agrrement also made betwwen the joint owner then no need to deduct tds
 

AGREE WITH NAVIN JAIN

Agree with Naveen & Asif Khan

Originally posted by : sathis
Dear All,
We are paying office rent a sum of24000/- as per rental agreement.
Rental agreement made between building owner Mr X and our office MD Mr  Y
Already we paid rent for the period from Nov'10 to Mar '11 without deduct TDS Bcoz not exceeding 180000/-
Now we going to pay rent a sum of21600/- after deduct TDS @ 10%.
But Mr X ask rent without deduct TDS and split the rent as three parts of names including him. i.e (8000 x 3 Mr.X, Mrs.X & Mr.X's son)
Shall we deduct TDS r not? Pls tell me immediately urgent.
Advance Thanks & Regards
S Sathis kumar

rephrase your rental agreement , 3 agreement with 3 diff persons of family and ask them to issue 3 rent receipts, issue 3 cheques and no TDS then, ( even split between two will not attract TDS)

agreement is only between your md n   mr.x n there is no other co-owners acording to your rental agreement . you cant  bifurcate the rent.

Remake the agreement as  the property is  taken for rent by three persons , n  the rent is being paid by three persons in certain ratio

acording to tds rules deduction of tax is based on how much amount is given by tenant , if it cross limit  tenant has to deduct tds. so it is not based on how much amount taken by owner.

If landlord is agree to amend rent agreement (splliting rent in three names) , is it on the part of tenant to look whether property is jointly owned by them or not ?

If the property belongs to three of them i.e. the all three persons are Joint Owner of that property/the space you availing on Rent then there is no question to deduct TDS in your case.

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