Tds on rent for personal use of house

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Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 whether a professional liable to Tax Audit required to deduct tax u/s 194I on rent paid by him for his house, i.e., personal expenses of the assessee.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 June 2012 TDS is required to be deducted only if you are claiming the deduction on account of rent.

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 But, it is mentioned only in sec. 194C & 194J that TDS is not be deducted on personal expenses, but this clause is not present in sec. 194I. whether, the A.O. can levy interest & penalty for failure to deduct TDS even on personal expense.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 June 2012 See if you are claiming the deduction of rent as expense then you have to deduct otherwise if you are not claiming you are not required to deduct. In case of non deduction expenses are disallowed but since you are not claiming the question of disallowance does not arise.

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 but friend, even if there is no question of disallowance, A.O. can levy interest & penalty u/s 220 for non deduction of TDS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 June 2012 In my view it will not attract penalty and interest. Views of other experts are welcome on this issue.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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08 May 2013 The section 194I has used the word "building" meaning thereby that there is no distinction between residential and commercial building. Therefore,in the case of rent on residential buildings as well, the tenant has to deduction tax under section 194I subject to the satisfaction of other conditions mentioned therein.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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08 May 2013 Since Last Budget, Now Only Whether You are Claiming Expenses or not is not the condition for deducting TDS.
Various penalty has been imposed if you dont deduct TDS.

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