Tds on rent from an individual

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Deepak Maheshwari (Querist)
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08 April 2013 Hi All,

Please solve my question.

A is prop of a firm covered under Tax Audit and has TAN Number in the name of firm.

on the other hand he is paying Rent of Rs. 80000/- Per Month from his personal account

So my question is should he deduct TDS on Rental Payment also or not ?

regards

Deepak

SANJAY TALATI

SANJAY TALATI (Expert)
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09 April 2013 Presuming the payment of rent is for commercial purpose and you are claiming as an expenditure in your Account, you are required to deduct the TDS as according to the provisions of Sec. 194 I , even individuals covered u/s 44AB are required to deduct tds.

Further to add that you have mentioned that you are paying rent in your personal name, in fact the properitor has to file the income tax return on the PAN allotted to him in the capacity of individual as the proprietor and the proprietorship firm are not separate entity as per income tax.