Tds deduction on rent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2011 ONE COMPANY HAS TAKEN A RENTAL PROPERTY FOR A MONTHLY RENT OF RS 50,000/- HAVING 5 OWNERS ALL ARE RELATIVES. RENT IS PAID BY CHEQUE TO EVERY INDIVIDUAL.

MY QUESTION IS HENCE THRESH HOLD LIMIT DOES NOT EXCEED BUT RENT WHICH IS PAID BY THE COMPANY IS RS. 50,000/- IT MEANS RENT PAID BY THE COMPANY EXCEEDS THE THRESH HODLD LIMIT.

TDS WILL BE DEDUCTED OR NOT.

IF THERE IS ANY CIRCULAR PLEASE REFER IT

REGARDS

SUBHASH SHARMA
ADVOCATE
M-9891338895

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

03 September 2011 If there are number of payees, each having a definite and ascertainable share in the property, the threshold limit will apply to each of the payees / co-owners separately.

Ref:- Answer to question 21 in CBDT Circular 715 reported in 215 ITR (St) 16.

Tareq Imam

Tareq Imam (Expert)

03 September 2011 No Need to deduct TDS since it is coming to Rs 10k per month

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2011 I think that “Entire Rent under a lease Deed” will be considered for TDS deduction and TDS should be deducted on this kind of transaction.

Please refere the meaning of Threshold limit :-

Meaning of Threshold Limit :-
“Threshold limit for TDS: - where any rent payable under any lease, sub-lease, tenancy, or any other agreement for the use of any land, building or land appurtenant to a building or machinery or plant or furniture or fitting exceeds Rs. 180000 during the financial year, tax is required to be deducted at source”.

Regards

Subhash Sharma
Advocate
M-9891338895

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

03 September 2011 Threshold limit is apply to each person separately. even lease deed one but the income is going to different persons, So I conclude with the view of experts above as TDS not apply in your case

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

04 September 2011 First of all the lease agreement is to be seen and if in the lease deed the share is specified and the payment terms are also fixed then the limit shall be on the basis of each person and not on the basis of the property.

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