TDS on Rent

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Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2010 Is it possible to Divide the rent agreement in to 2 parts i.e., Saperate Agreement of Maintanance and Rental Agreeemnt
Ex. Rent Agreement for Rs. 10000/- PM and Maintanance is for Rs. 3000/- PM,
Insted of Rs. 13000/- PM as Rent

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 April 2010 STILL TDS WILL BE DEDUCTED ON RS 13000/- @ 10% TILL 30.06.2010 AFTER THAT NO TDS AS LIMIT REVISED FROM 01.07.2010 IS RS 180000/-.

 Meaning of Rent for the purposes of Section 194-I: any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any of the following whether any or all of them are owned by the payee or not:

1.Land
2.Building including factory building
3.Land appurtenant to a building including factory building.
4.Machinery
5.Plant
6.Equipment
7.Furniture
8.Fittings

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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21 April 2010 You can do with mutual understanding.
Currently threshold limit is INR 1,20,000.00 and it will enhance to INR 1,80,000.00 w.e.f 01.07.2010.
If mainteance agreement is directly related to Rent agreement, than you have to deduct TDS upto 30th June 2010, after that no need to deduct TDS becasue of threshold limit.

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2010 In case we have to pay the rent from April.10 to Mar.11, for Rs. 13000/- as rent PM, it is compulsory to Deduct the TDS?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 April 2010 YES YOU HAVE TO DEDUCT TDS FOR 1ST THREE MONTHS AFTER THAT UNDER ENHANCED LIMIT TDS DEDUCTION NOT REQUIRED.

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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21 April 2010 No, you have to deduct TDS on Rent only from April 2010 to June 2010.