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tds on rent

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2009 rent payment by the client is +1,20,000 p.a but they have not deducted tax as in the agreement there are 3 parties to whom rent is payable.but cheque is issued to only one party (instead of 3).Actually property is in the name of 3 brothers but for convenience sake they want only 1 cheque.is it ok if TDS not deducted as individually rent is not exceeding 120000.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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10 November 2009 Payee should be different for applying the 1,20,000 limit for each.

So payment should be made to different owner by diiferent cheque or TDS would be applicable.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 November 2009 If each have a definite and ascertainable share in the property, the limit of Rs.120000/- p.a will apply to each of the payees/ co-owners.

Ref:- Circular 715 reported in 215 ITR (St) 16 question no 21.

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