TDS FOR RENT

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This query is : Resolved

Karan Khurana (Querist)
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02 March 2011 Dear All

I have a confusion regarding TDS on Rent
Suppose My company Name is ABC & Co. and we are paying Rent of14000.00 to Mr A from June 2010. in that case TDS is applicable coz annual limit is 120000 so we deduct1400 We know very well Exemption limit for Rent is 180000.00 PA w.e.f 01.07.2010 According to Monthly Rent amount now TDS deduction is not applicable for his rent amount so for July we stop the deduction
my confusion is as per the agreement his rent is revise to 15400 P.M from March 2011
So plz tell me the Amount of TDS for the month of March - 2011

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 March 2011 As the aggregate Rent is not exceeding 1,80,000 in this Financial Year, you need not to deduct TDS.
Your liability to TDS deduction arises only after rent payments are going to exceed 1.80lacs. However, when it exceeds 1.80lac you have to deduct TDS on all the earlier payments also.

So You are not having any liability for March 2011.

Karan Khurana

Karan Khurana (Querist)
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03 March 2011 Thanks you so much sir

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