Tds on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2013 Hi All,

I have a query with respect to TDS on Rent:
Employer is paying rent on behalf of employee and deducting TDS on the same.
Also, employer is recovering the amount along with the TDS from the employee.
So the query is whether TDS is applicable as the amount is recovered from employee?

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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21 March 2013 dear..

as per sec. 194I an individual is required to deduct TDS only if he is liable to tax audit in the preceding F.Y.

therefore employee is not required to deduct TDS

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2013 but in this case the employer is a company and it is deducting TDS as it is paying rent on behalf of the employee

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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21 March 2013 dear in that case you can take benefit of plain reading of sec. 194I that any person responsible for "paying any income by way of rent".

in your case you are reimbursing amount of rent paid on their behalf not making any payment which is income for the payee..

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