If I am earning a rent income of suppose Rs. 52,000/- a month from an individual person then is it mandatory to deduct TDS on this amount. The property is in the name of 2 persons.
01 July 2021
If the rent is paid to the joint owners proportionately and such proportion of each owner does not exceed the threshold limit of Rs.50k pm, then no tax to be deducted at source u/s 194IB
01 July 2021
How about if rent is paid by 2 persons equally to a single owner of the property of Rs 25,000/- each per month. Is tds applicable it this case?
02 July 2021
But Sir the section 194IB says if you are paying rent in excess of Rs. 50,000/- you need to deduct TDS at the end of financial year even if you are not under tax audit.
In my case rent is payable by an individual who does not fall under tax audit and the individual who has received the rent is the single owner of the premises.
02 July 2021
As mentioned in the latest query if payer of rent exceeding Rs.50,000/-, is an individual and also the receiver of rent is also a resident individual , then TDS needs to be deducted under the said section. In case if genuinely the property is under joint ownership, then revise the rental agreement so as to get rent credited in the name of each joint owner so that no obligation arises to comply with the section.
03 July 2021
The property is under single ownership so dividing the income is not possible in this case. But there are 2 tenants staying in that property. Can they equally pay the rent to escape the tds deduction to be made?
03 July 2021
Threshold limit of 50k is for the payer of rent. Further, there is no restriction for a single owner to rent out parts of the property to different tenants. On this basis, if the property is rented out genuinely to 2 different tenants, then 194IB would not apply because threshold limit does not exceed for both the tenants.
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