LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds on rent paid by company for house on company lease

Sanjay (AM) (32 Points)

15 December 2011

Hi,

I am planning to give my house to an individual on company lease. Rent of the property is 22k. Now my questions are

- How much company will deduct as TDS for this payment. Will they deposit this on monthly basis to Govt?

- Will they provide me any form16A to include this TDS in my return?

Thanks

Reply
Follow
Share

3 Replies

nikhil (CA) (77 Points)
Replied 15 December 2011

Yes the company will deduct TDS @ 10% on the rent amount & deposit it on monthly basis in govt a/c and the company will provide you form 16A for the same

chandrika (CA Final student) (107 Points)
Replied 16 December 2011

yes tds will be made @ 10% nd on monthly basis.

company should provide u form16A for that

sadasivareddy (Employee) (78 Points)
Replied 16 December 2011

The tax is to be deducted from the actual payment and there is no need of computing notional income in respect of a deposit given to the landlord. If the deposit is adjustable against future rent, the deposit is in the nature of advance rent subject to TDS. However, if the deposit is refundable, no tax is required to be deducted at source. If the deposit is non-refundable, it also takes the character of payment for the user of premises and is subject to TDS. [Circular No.718 dt.22-8-1995].