Applicability of tds u/s 194i rent on building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2014 CASE:- property is owned by 2 persons jointly, and rent received on that property is more than 1.8 lakhs & amount is deposited in their joint account.
Situation 1:- whether the limit of 1.8 lakhs is for person or for property.
Situation 2 :- if ratio is not mentioned anywhere then can i say that rental income can be divided 50:50 between those 2 persons in their ITR
Situation 3:- suppose TDS deducted on rent of that property is reflected in 26AS of 1 person only.Now (if situation 2 is yes) then rent gets divided in them & each person gets rent amount which is below 1.8 lakhs. in this case can i say that as rent received by each person is less than 1.8 lakhs TDS u/s 194I should not be deducted.

Rajagopalakrishnan R

Rajagopalakrishnan R (Expert)
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25 May 2014 1. The Limit of 1.8 lakhs is per person and not per property
2. If ratio is not mentioned then by virtue of Section 26 and 22, the rental is liable to be assessed in the hands of an AOP with the two owners as members of AOP.
3. If the respective shares are well determined, then if each persons rent is below 1.8 lakhs PA no TDs is necessary

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