TDS on Rent paid Directly to Landlord on behalf of Employee

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Jayesh Jagetiya (Querist)
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07 March 2009 Dear Friends,

our company has paid Rent Directly to Landlord on behalf of Employee of Rs 1.88 Lacs.
What will be the implications:-
1. Should we include full rent paid in the salary in the employee & deduct tds on the same from the salary u/s 192? any exemption to be given to employee?
2. Should we deduct tax from the amt given to Landlord u/s 194I?

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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07 March 2009 It is taxable perqs for employee i.e. any amount given by employer to employee whether directly or indirectly, therefore apply 192.

Just for clarification it is not a case of Rent Free Accomodation as per the details given by you.

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K V Subba Rao

K V Subba Rao (Expert)
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07 March 2009 Querist may clarify whether Company bears expenditure or not. In the normal course, Company bears expenditure in which case (i) valuation of perquisite has to be done; and (ii) TDS has to be affected while making payment to Landlord

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Nitin

Nitin (Expert)
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02 May 2013 Hi,

As i understand the query ,in both the cases company is bearing the expenditure ,the question may be of booking under which head .Pl confirm if it is being booked under Salary as nornally that is the case .To clarify it more ,company is paying a HRA of 10K PM but instead of paying to employee paying that amount directly to landlord .There is no agreement between Landlord and employer.

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