TDS ON RENT

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This query is : Resolved

Mr. Priyanka Jena (Querist)

03 September 2008 HOW TDS ON RENT TO BE CALCULATED IN CASE

1.single agreement with the lessor ,which contains rent for premises is Rs70000 & rent for furniture Rs.22000/
2.Is tds would be charged on the furniture?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

03 September 2008 Yes.

Vivek Banginwar

Vivek Banginwar (Expert)

03 September 2008 The term Rent means any payment under any lease, sub-lease, tenancy or any other agreement for the use of any land, building,furniture, fittings etc whether or not any or all of the above are owned by the assessee.Hence TDS will be charged on the furniture.
Rates of TDS: 15% WHERE PAYEE IS INDIVIDUAL OR HUF
20% WHERE PAYEE IS OTHER THAN INDIVIDUAL OR HUF.(Sec.194I of I.T.Act,1961)

Jitender

Jitender (Expert)

03 September 2008 tds will be charged on furniture.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

03 September 2008 Explanation.—For the purposes of this section,—

52 [(i) “rent” means 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,—

(a) land; or

(b) building (including factory building); or

(c) land appurtenant to a building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

whether or not any or all of the above are owned by the payee;]

CA supriyo saha

CA supriyo saha (Expert)

03 September 2008 But here how TDS will be deducted as in 194I threshold limit is Rs 120000. So tds on furniture will not be deducted as the amount rs-22000.

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