Tax on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2011 If two individuals , jointly pay a rent of 20,000 p.m.to an individual as rent for a house .One pays Rs.15000 and the other Rs.5000( in current financial year ), will it attract TDS?.

Both are salaried ( father and daughter - each availing HRA benefits )

If no under what rule and if yes under what rule.

As per Act currently Rent above Rs.1.80 lakhs per annum paid as rent ,will attract TDS ?

Kindly clarify

Pragnesh

Pragnesh (Expert)
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13 September 2011 As per my view, The provisions of section 194-I do not normally cover any payment for rent made by an individual or HUF except in cases where the total sales, gross receipts or turnover from business and profession carried on by the individual or HUF exceed the monetary limits specified under clause (a) or clause (b) of section 44AB.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 September 2011 In your case TDS will not attract,since payer is different, each payer has to consider the threshold limit

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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13 September 2011 Yes In your case TDS will attract if we assumed that both are paying 10,000 -10,000
than every one is paying 1.2 lakhs in a year it is more than 1 lakh so TDS will attract.

Abhishek Ranjan Singh
ARS Solution
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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 September 2011 The observation of Pragnesh Ji is the correct view.

CA Punit

CA Punit (Expert)
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13 September 2011 Agree with Pragnesh Sitapara and would like to add that.....
TDS needs be made if the rent is/to be claimed as a business expense and tax audit was applicable in PREVIOUS YEAR to the individual/huf.

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