Tds on rent (point of taxation)

This query is : Resolved

LIJO PHILIP (Querist)
Follow

18 December 2015 Sir / Madam,

Please solve this regarding tax impact on this transaction :-

Mr. R is an employee of ABC Limited. He is working in Pune and provided an accomodation by company (free) and he is claiming a rent of Rs. 25000 monthly (3 lakh yearly) for the his family who is staying in Delhi on Rental house. He first pays the rent out of his pocket and then claims (reimburses) from the Company.
Query :- 1) On this transaction TDS will be applicable as the yearly rent is more than Rs. 180,000 ?
2) If yes, then please suggest how the TDS will be deducted (point of taxation), will it be deducted from the Owners Income (House Owner) or will this be treated as an income of Mr. R and TDS will be deducted from Mr. R.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

21 December 2015 The provisions of deduction of TDS not applicable to individuals and HUF, if they are not liable to tax audit. Tax audit is applicable to assessees who are carrying business or profession exceeding certain limits of turnover. In this case, the assessee is receiving salary income, he is not liable to deduct TDS.