24 February 2018
Dear Experts, My Company's Director made a Rent Agreement with his Landlord for himself for Rent of Rs. 1 Lac p.m. Company wish to pay Security amount of Rs. 5 Lacs & also agree to pay monthly Rent of Rs. 1 Lac directly to Landlord on behalf of Director. Now, whether the company deduct the TDS on Rs. 1 Lac paid to Landlord, if yes than in which section. is it 194I (Rent) or 192 (Salary) ? pl. explain it. Thanks in Advance.
24 February 2018
In what way you show payment made to landlord on benefits of Director, How you book in company books of Account,
If you treat salary to Director, Route Rent Portion to Land lord and consider the same towards Adjustment to Director salary. If salary paid above taxable limit to TDS to be deducted u/s 192B.
With respect to rent paid by company from salary payment, Company is not responsible to deduct TDS, Company not book Expenses for payment made as rent. Director has to deduct TDS on Rent On individual capacity Individuals and HUFs paying rent of Rs 50,000 or more per month will now have to deduct 5% tax at source i.e TDS at the rate of 5%
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