Tds on rent

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NAMAN DUTT (Querist)
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02 May 2012 My company is paying rent to a person (one of the co-owner (1st owner)who has authorise by rest of three co-owner to receive rent payment by making power of atorney in his name)for use of property @ Rs. 16000/- p.m..

My question is that, whether we should deduct TDS or rent as all four co-owner has definite share in the property 1/4th share each but rent paid to only one owner.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 May 2012 If total rent is 16000/- per month then TDS not required to be deducted.

In case of co-owners of a property, the threshold limit for TDS under section 194-I applies to each co-owner

Where property in question leased out to a bank was owned by various co-owners and each owner was having a definite and ascertainable share in property, threshold limit for purpose of deduction of tax at source under section 194-I would apply to each of co-owners separately - CIT v. SENIOR MANAGER SBI[2012] 20 taxmann.com 40 (Allahabad)

NAMAN DUTT

NAMAN DUTT (Querist)
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02 May 2012 i still in a doubt.

Whether this applies to co-owners or payees, because, here number of co-owners are 4 but payee is only 1 owner who has authorise by the rest co-owners to receive payment by issuing POA in his name.

Plz. clarify

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 May 2012 If you are just paying the amount to him on their behalf then you are not required to deduct TDS.

Are you booking the entire rent in his account or booking to each of the four individual?

Depends lot on the text of the agreement and POA.

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