Tds on rent to be deducted in case of co-owners

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2011 In case of our client, he has taken two properties on rent and both properties are jointly owned by those two co-owners eg X and Y .Rent of 1 property is 24000, 12000 to be paid to each co-owner- X and Y and 2nd property rent is 9000, 4500 to be paid to co-owners X and Y which are the same. Now, should TDS be deducted from payment to be made u/s 194I for payment to be made to both co-owners - X and Y ?

CA Divyesh Sodha

CA Divyesh Sodha (Expert)
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28 September 2011 The limit of Rs.180000/- for rent applicable to payment to each co owners hence if payment of single owner dose not exceed the above limit, no need to deduct tax.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2011 But here if i consider payment to X- 12000+4500= Rs.16500 ie total rent paid to him for two properties for 1 month, therefore - 16500*12=Rs. 198000 yearly payment then is tds required since part payment is for 1 property Rs.12000 and another Rs. 4500 is for 2nd property of X but the total payment made to co-owner exceeds 180000 limit ?

CA Divyesh Sodha

CA Divyesh Sodha (Expert)
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28 September 2011 Yes you have to make tds as limit is payee wise not property wise

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