18 February 2010
Dear Sir, If we given rent 11,000/- per month for the 11 months in a financial year then the total amount of Rent will be paid 1,21,000/- in a F.Y. exceeds 1,20,000/- limit, then we have to deduct tds on whole amount or on the excess on over limit which is Rs. 1,000/- in above case, Please reply with brief discription as soon as possible.
18 February 2010
You need to deduct the TDS on the entire amount of RS 121000 /-.
The section 194I provides that no deduction should be made if amount or aggregate of rent does not exceed Rs 120k. It nowhere mentions that you are eligible for exemption of RS 120k from the rent paid.
CAclubindia
