Tds on rent

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rohit (Querist)
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18 July 2013 WHAT WILL BE THE TDS LIABILITY ON ADVANCR RENT PAID?

WHAT WILL BE THE TREATMENT IF SUBSEQUENTLY RENT AGREEMENT IS TERMINATED?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 July 2013 TDS needs to be deducted even on advance payments. For Rent Section 194I will apply. Rate of TDS 10%. Threshold limit Rs 1.80 Lacs per annum.

So if the advance amount is Rs 1.80 lacs or less you need not deduct TDS. You can start deducting TDS once threshold limit is crossed.

Ganeshbabu K

Ganeshbabu K (Expert)
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18 July 2013 1)Yes. TDS 194I is Applicable on advance rent paid.

2)But in case of security deposit of rent..

TDS need not be deducted on refundable rent deposit.please refer CBDT Circular 718. dated 22-08-1995(refer second question)

So please refer what is the nature of payment if it is refundable rent deposit NO TDS required as above..

Thanks & regards
Ganesh babu k

rohit

rohit (Querist)
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07 March 2014 IF INDIVIDUAL DEDUCTS TDS ON RENT ,THEN WHAT WILL BE THE RATE APPLICABLE?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 March 2014 Rate will be same i.e., 10%.

Individual need to deduct TDS only if his file was under Tax Audit during the preceding previous year.

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