Tds on rent

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CA Mandar Joshi (Querist)
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13 March 2012 A company is paying rent for staff accommodation to 2 individuals for the same residential premises. Total amount of rent is Rs.2,34,000/-. Should the TDS be made ? Please reply ASAP, urgent

Rajnikant Vadigoppula

Rajnikant Vadigoppula (Expert)
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13 March 2012 Yes as far as the recipient is single person and recieves rent more than 180000 (one lakh eighty thousand)

Rajnikant Vadigoppula

Rajnikant Vadigoppula (Expert)
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13 March 2012 in the present case recipient receives rent 234000 which is more than 180000.
so, TDS Should be deducted on whole amount i.e., 234000.

CA Mandar Joshi

CA Mandar Joshi (Querist)
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13 March 2012 The rental premise is owned by two individuals jointly and company is paying them in 50-50 proportion. Should the TDS be done now?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 March 2012 In the given case. threshold limit is not crossed for each individual, so no need to deduct TDS

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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14 March 2012 CBDT Circular 715 dtd 8/8/1995 issued to clarify that If there are a number of payees, each having definite and ascertainable share in the property, the limit of Rs. 1,20,000( now the limited increased to Rs.1,80,000) will apply to each of the payee/co-owner separately. The payers and the payees are however advised not to enter into sham agreements to avoid TDS provisions.

I'm agreeing with Ramesh , TDS Threshold limit not exceeded , therefore need not deduct TDS.( providedeach having definite and ascertainable share in the property 50:50)

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