Tds on rent

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Azharuddin (Querist)
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20 March 2014 let's assume a person has ownership of 3 DIFFRENT HOUSES. And he is charging 10000 per month PER HOUSE. That means his income from these houses is 360000 every year.
SO THE LIMIT OF RS.180000 SHUD BE TAKEN IN AGGREGATE FOR ALL PROPERTIES OR INDIVIDUALLY FOR SINGLE PROPERTY ???
NOTE:IN ALL THE ABOVE CASE PROPERTIES ARE OWNED BY A SINGLE OWNER ONLY..
WHEATHER TDS SHUD BE DEDUCTED OR NOT???????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 March 2014 since individually he is charging 8000 *12 =96000 is this per tenant or wat?

Sandeep Dharar

Sandeep Dharar (Expert)
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20 March 2014 TDS should b deducted u/s 194I i.e, Rent....

Azharuddin

Azharuddin (Querist)
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20 March 2014 he is charging rs.10000 from each tenant..

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 March 2014 so if there is different tenants and if its not exceedsing 180,000 per tenant then no tds is deducted....

Azharuddin

Azharuddin (Querist)
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20 March 2014 but 194i applies to the owner of the properties
and not the tenent

Azharuddin

Azharuddin (Querist)
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20 March 2014 tenant is a single person and has taken on rent diffrent premises owned by a single owner

Sandeep Dharar

Sandeep Dharar (Expert)
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20 March 2014 Look Azhar the limit of Rs 180000/- is on a single party, & if he is recovering rent from 3 diff. parties then no TDS will b applicable....

The tenants r liable to deduct TDS coz income is arising in hands of the owner, then how owner will deduct TDS???

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 March 2014 in such case then payment to single tenant exceeds rs 180,000 then it tds is applicable...

Sandeep Dharar

Sandeep Dharar (Expert)
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20 March 2014 If Tenant is single person & payment is also made to single owner(360000/-) then TDS is applicable....

Azharuddin

Azharuddin (Querist)
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20 March 2014 yes sandeep u got it right...
do u have any case study in this reference as proof

Azharuddin

Azharuddin (Querist)
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20 March 2014 basically where the doubt came was since there were diffrent properties i thought limit of rs180000 is for every single property individually.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 March 2014 there is no need for any case study in this case as the law is quiet clear....

Sandeep Dharar

Sandeep Dharar (Expert)
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20 March 2014 U can read different it in V K Singhania (Direct Tax Ready Reckoner), there u will find many more case & laws regarding that....

Azharuddin

Azharuddin (Querist)
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20 March 2014 law never mentions the case for diffrent properties..
i am not able to find it in income tax act too...

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 March 2014 so when its not mentionning then u need to interpret it as for whole property tds will be applicable...

CA. ASHWANI MAURYA

CA. ASHWANI MAURYA (Expert)
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22 March 2014 This matter has already been made full of confusion. At last I want to clear it that
1. Tenant is responsible to deduct tax.
2. Tenant should be other than Individual & HUF.
3. Total amount of rent during the year exceeds Rs. 180000.
4. This is applicable to each tenant separatly.

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