TDS
This query is : Resolved
01 April 2009
Mr A acquire an office building on Rent.As per rent agreement Mr.A has to pay Rs.45000/-pm rent and Property Tax Rs 16,00,000/p.a.
Now the querry is whether Mr. A is liable to deduct tax only on Rs 45000/-pm or property tax will also be considered as rent in kind and has to deduct tax on that amount also ?
Now the querry is whether Mr. A is liable to deduct tax only on Rs 45000/-pm or property tax will also be considered as rent in kind and has to deduct tax on that amount also ?
01 April 2009
Yes, TDS is applicable on both.
01 April 2009
may i know what exactly is property tax whether its paid to govt or...?
pls pm me
pls pm me
01 April 2009
Total consideration received directly and indirectly by Landlord works out to Rs 21.40 lacs {(Rent Rs 45000 x 12 Months)+Municipal Tax Rs 1600000}
As against annual rent of Rs 21.40 lacs, is such huge sum of Rs 16.00 lacs (about 75%) payable towards Property Tax alone ?
Coming to TDS aspect, TDS has to be affected on Rs 21.40 lacs
As against annual rent of Rs 21.40 lacs, is such huge sum of Rs 16.00 lacs (about 75%) payable towards Property Tax alone ?
Coming to TDS aspect, TDS has to be affected on Rs 21.40 lacs
01 April 2009
As per Circular 718 dt 22-08-1995 no tax will be deducted on Municipal Taxes if it is borne by the tenant.
02 April 2009
circular 718
Rent has been defined, to mean payment under any lease, tenancy, agreement,etc., for use of any land or building. Thus if muncipal tax, gorund rent, etc., are borne by tenant no tax will be deducted on such sum
so applying this rule tds wont be deducted on property tax also which is borne by tenant as the same is to be paid to government and is not the income of the owner
Rent has been defined, to mean payment under any lease, tenancy, agreement,etc., for use of any land or building. Thus if muncipal tax, gorund rent, etc., are borne by tenant no tax will be deducted on such sum
so applying this rule tds wont be deducted on property tax also which is borne by tenant as the same is to be paid to government and is not the income of the owner
02 April 2009
After goint thro replies of Sri Hussain and Ms Gandhi, I agree with their views
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Capital Gains on sale of residential flat
- F & O PROFIT REPORTING FOR AY 2026-27
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
