Tds deduction u/s 194-i

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2016 whether TDS is deductible if single payment of rent does not exceed Rs. 1,80,000/- but aggregate of such payment during the financial year is exceeded Rs. 1,80,000/-. in other work i wish to know that cap of Rs. 1,80,000/- is applicable on aggregate payment or single payment..

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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01 April 2016 if aggregate amount of rent paid during the year will exceed Rs. 1,80,000/- then you will have to deduct tds @ 10% from first payment

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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01 April 2016 As per the provision i.e. Section-194-I
Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon

this means that the if you pay Rent to Mr. X Mr. Y & Mr. Z Rs.2,00,000/- Rs.1,85,000/- & Rs.90,000/-
p.a. respectively
then TDS would be deduted on the following

Mr.X = Rs.20,000/-
Mr.Y = Rs.18,500/-
Mr.Z = NIL (being less than Rs.180000/-)

since the same limit for TDS has to be computed payee wise & not expense so if the total payment for a person goes beyond Rs.180000/- in a year then TDS has to be deducted,i.e.

If Rent paid to Mr.X Mr.Y & Mr.Z is Rs.1,20,000/-, Rs.84,000 & Rs.96,000 p.a. respectively
here the Total Rent is Rs.3,00,000/- but none of the payment goes beyond Rs.1,80,000/-

So no TDS is required here