Tds on rent above 50k a month & split

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 I have a question for you. I am planning on renting a residence in mumbai for rs70k a month. I have two questions. Ia am a salaried individual

1. In a company lease TDS is deducted. Is TDS deducted in a personal lease ?

2. The land lord wants to break up the lease into a par rental 40k per month and part payment for funiture 30k per month so that he saves tax. Does it imply that i can use HRA tax benefit only on 40K (which is the rental excluding the furniture tax)? Or will i be able to get tax deduction on the entire 70k net of 10% of basic?

Thanks
Sujay

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 July 2012 In a pesonal lease taken by an employee assessee TDS is not deductible on the rent payable by him.
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You can use only Rent paid for flat and not for furniture for calculating exempt HRA .
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The rent paid in respect of furniture has to be borne by the assessee employee.
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CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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21 July 2012 Although you are not required to deduct TDS, but you will be required to give the PAN of your landlord (as the monthly rent is above INR 15K)

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 Thanks a rlton Amit and Paras

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