Tds on rent u/s 194 i

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Sagar (Querist)
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17 March 2016 Dear experts,

PLease clarify me on TDS to be deducted or not, when a party rental agreement have clauses as below.

Rent payable is 14,000 till may (for 2 months) & 5% increase (15400 * 10 for the rest period), totaly rent payable is Rs. 182,000/-, TDS should be deducted from April itself or not.

Regards,

sagar.v

PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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17 March 2016 Dear Sagar

Definately TDS must be deducted. See, if there is an agreement between the parties then assessee, who is required to deduct TDS, knows that the limit of Rs.180,000 will be crossed in the financial year. It has to deduct TDS from the very first payment.

Regards
Pradeep Kumar

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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17 March 2016 TDS to be deducted , Rent crosses treshold limit of Rs.180000/-P.A you have to start deduct tds Form June ( Considering April & May Rent) Since you know in The hike of Rent in June .

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PRADEEP KUMAR VATS

PRADEEP KUMAR VATS (Expert)
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17 March 2016 Dear Kaviraja

As per the query asked by sagar, it is presumed that it was agreed between the parties about the escalation claim.

And if accept your situation that assessee realised the hike of rent in the month of June then correct assessee has to deduct TDS from the june but apart from that interest for the month of April and May has to be paid by assesee.

Regards
Pradeep Kumar

Ankur Singhal

Ankur Singhal (Expert)
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17 March 2016 Dear
TDS to be deducted from April onwards.
As on the date it is clear that rent amount will exceed Rs.180000/-

Amol S Joglekar

Amol S Joglekar (Expert)
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17 March 2016 TDS is to be deducted from the date when it is clear that it is going to cross the threshhold limit.

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