TDS on Rent paid

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This query is : Resolved

Hanmantu N.Sai (Querist)

17 July 2008 Good Morning to all,

Any one can tell me if rent paid to shop owner by company or firm attracts deduction of TDS on rent? And if the owner gave 2 names for rent receipt purpose
i.e. if we monthly rent of Rs.15000/- then annual rent will be Rs.180000/- which exceeds Rs.120000/- it attracts TDS. But if i given payments in favour of 2 different names, i.e.Rs.7500/- (Rs.90000/- p.a.) to Mr. A & Rs.7500/-(Rs.90000/- p.a.)Mr.B, then it attracts TDS on Rent?

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)

17 July 2008 if rent payer is individual or huf, who are not required to undergo tax audit u/s 44AB, no need to deduct tds.

in case of company or firm, if payment to single person does not exceed rs. 120000/- p.a., no need to deduct tax.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

17 July 2008 In case the rent is paid to two persons then no tax is to be deducted as the payee are in receipt of rent less than 120000. The limit is to be considered person wise.

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)

17 July 2008 As in your case rent is given by the firm or the company it will have to deduct the tax if the total payment is crossed by 1,20,000/- P.A. In ur case no need to deduct the tax.

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