TDS on rent

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archana (Querist)
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12 July 2011 Hello,

If the rent of Rs. 20000 p.m. is paid for the rented premises and the cheque for this rent is given in 2 persons name say Mr.X rs. 10000 and Mr. Y Rs. 10000 p.m. Then in this case individual limit of Rs. 120000 is no crossed, but considering the overall rent it has crossed, should the tds on this amount should be deducted for both of them.
please do guide me.

R.RAMESH NAYAK

R.RAMESH NAYAK (Expert)
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12 July 2011 you doubt is solved or shall i answer

archana

archana (Querist)
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12 July 2011 hello,
please answer

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 July 2011 If X and Y are the legal owners of the property with equal rights of ownership, rent can be shared equally.If that is the situation in your case, section 194I doesn't attract.

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archana

archana (Querist)
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12 July 2011 thank you sir.
so it means that i dont have to deduct the tds on rent from X and Y even though their rent received in individual capacity is more than 120000 p.a. is it right.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 July 2011 My observation is based on CBDT Circular 715 dated 8/8/1995 (Q.21). Pl have a look for a proper understanding of the issue raised by u.

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R.RAMESH NAYAK

R.RAMESH NAYAK (Expert)
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13 July 2011 you have to Deduct TDS on rent b'coz you are booking rent for single premises & single entry for rent not on individual basis. so we have to deduct Tds @ 10% each person. The limit is 180000/- not 120000/-. New TDS rates has been changed kindly look for the July release.

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