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TDS on Rent

Kumar Sushank (General Manager - Finance) (1040 Points)

09 September 2019

If One individual is paying Rent of Rs. 20,000/- per month to other individual then should TDS Deduction will be required or not, Case is belongs to FY 2018-19

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8 Replies

Abhishek Shah (4 Points)
Replied 09 September 2019

TDS deduction is not required in this case.

Regards

Kapadia Pravin (17249 Points)
Replied 09 September 2019

Budget 2019 has increased the limit to 240000/-. And it will from FY 2019-2020.

For 2018-2019 the limit was 180000/-and TDS was applicable.

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 09 September 2019

Thanks Kapadia Pravin!!!

I am little bit confuse on given article.

https://economictimes.indiatimes.com/wealth/tax/cut-tds-from-june-1-if-paying-rent-over-rs-50000-per-month-heres-how-to-do-it/articleshow/59575613.cms

Can you please give me an explanation on this.

sabyasachi mukherjee (26263 Points)
Replied 09 September 2019

@ pravin answer whether tds is payable on rent or not .
consider a solitary case.
an individual makes a leasehold agreement receives rent.
the tenant pays rent and gets receipt from the landlord.
now if no tds is deducted.
will the landlord be liable for any action .

Aman Shivharey (78 Points)
Replied 09 September 2019

does the individual who is paying rent had tax audit in P.y if yes then he is liable to deduct tds if not then 194IB will be applicable which requires individual to deduct tds if rent is more than 50000pm

Kapadia Pravin (17249 Points)
Replied 09 September 2019

@ Kumar
in my earlier reply I presumed following -
Under 194I -
Also, individuals and/or HUFs who are subject to tax audit are also under an obligation to deduct the tax at source. Limit now is 240000/- from FY 2019-2020. Before that the limit was 180000/-

if individual (not under tax audit) pays rent to another individual then following is the provision :-

Individuals who are not subject to Tax Audits are liable to deduct tax (TDS) at 5% of the rent in case they are paying an amount which exceeds `50,000 every month to a resident Indian. This amendment has come into effect from the 1st June, 2017.

Harish Duddu (2 Points)
Replied 09 September 2019

no disallowance of expenditure u/s.40(a)(1a) is warranted

sabyasachi mukherjee (26263 Points)
Replied 10 September 2019

I know all the provisions relating tO TDS ON RENT
But generally indiviDUAL HAS TO SUBMIT TDS RETURN.
THEN HE DOES NOT INVOLVE IN ALL THIS OBLIGATIONS.