Tds on rent to partners

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This query is : Resolved

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TDS under Section 194I is not applicable when rent paid to each co-owner partner does not exceed the prescribed threshold limit individually. In this case, each partner receives Rs. 96,000 annually, which is below the limit.

Anu Elizabeth Shaju

Anu Elizabeth Shaju (Querist)
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01 August 2013 rent payments are made by a partnershp firm for a godown of the firm which is jointly owned by 3 partners in the ratio 1:1:1.

rent per month=8000
aggregate rent paid to 1 partner=8000*12
=96000

aggregate rent paid to 3 partnes=8000*12*3
=288000
should tds be deducted u/s 194I???

pls reply

Ganeshbabu K

Ganeshbabu K (Expert)
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01 August 2013 No TDS required

Threshold limit of 180000 can be enjoyed individually

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 August 2013 No tds is applicable.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 August 2013 The limit of Rs.1,80,000/- will apply to each payee/co-owners separately, vide CBDT Circular 715 reported in 215 ITR (St)16,hence provisions of section 194I doesn't apply.

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Anu Elizabeth Shaju

Anu Elizabeth Shaju (Querist)
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02 August 2013 thank you all :)