Tds on rental

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This query is : Resolved

Shailendra Sharma (Querist)

17 May 2015 Sir our company hired a warehouse in Mumbai which is of Govt.Of India can we deduct tds one person has said that you can not deduct TDs of govt of India sir please help monthly rental amount is 230000.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

18 May 2015 If Rent is paid to Government Department then TDS not required to be deducted pursuant to provisions of Section 196 of the Income Tax Act, 1961 which given below:

196. Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to—
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or
(iv) a Mutual Fund specified under clause (23D) of section 10,
where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.

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