Tds on rent

This query is : Resolved

ultragaurav (Querist)
Follow

20 September 2011 Sir,
One client have rent income from 3 places 7000,6000,7000PM aggregating 240000 Rs/p.a .will sec 194(i) applicable here bcoz aggregate amount is more than 180000,IF No than please reply

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
Follow

20 September 2011 TDS is not on income but on payment, a responsibility bestowed upon the payer to deduct the tax while making the payment. Sec. 194I prescribes the threshold limit of Rs.120000/- upto 30.06.11 and thereafter of Rs.180000/- w.e.f. 01.07.2011. Please note that to make the TDS possible on the payment of Rent to any vendor such threshold limit is to be kept into consideration, threshold limit may become applicable even on a single transaction or during the F.Y, as the case may be and per vendor.

Yogesh Agarwal

Yogesh Agarwal (Expert)
Follow

20 September 2011 Liability to deduct TDS is not lying on you since you are the receiving the amount. It is the duty of the payer to consider the deduction of TDS while making payment to you.

ultragaurav

ultragaurav (Querist)
Follow

20 September 2011 Thanks to both of you ,means ki sir when a payee have to pay more than180000 as a rent than he has to deduct the tds whether he is paying 60000,70000, & 50000 to A,B,& C respectively or only to one person only (i.e more than 180000 RS/pa to a only)