Tds on rental income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2015 My mother aged 69 years is having this year's Income as under : Rs. 3.96 Lac Office Rental Income + Rs. 2 Lac Share Trading Income + Rs. 1 Lac Late Father's Pension + Rs. 1.40 Lac her own Pension + Rs.1.5 Lac FD Interest. Total income Rs. 9.86 Lacs

Office Rented to Private Limited co. They want to deduct Tds on Rental income.

My mother is having carried over loss on Share trading business of around Rs 25 Lacs.

Can she get exemption from Tds ?

What declaration ( just like Form 15H that we submit to bank) needed ? Which form we need to fill up and whom to be given to get this exemption ?

Akash Barman

Akash Barman (Expert)
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09 January 2015 Share Trading loss is a speculative business loss which can be setoff against Profit from speculative business.
Only 2 lacs could be set off .
Now the other income crosses the basic slab.
Therefore 15h wouldnot be worked upon.
Rental income would attract TDS....

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 January 2015 since your gross income exceeds the basic slab hence 15H is not available for you in this case.

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2015 @ Akash Sir,

Share trading is not speculative income. I am showing it as Business income. ( As per my understanding only currency & intraday trading is speculative.) I have shown share trading as my main business activity. Also main portion of trading in our case is of Derivative ( Future & Options) which can be considered as Income from Business.

Now pls suggest.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Got it! Here's a breakdown regarding **TDS on rental income** and your mother’s situation:

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### 1. **TDS Deduction on Rent Paid to Individuals**

* When rent is paid by a company (Private Limited Co.), **TDS under Section 194I** must be deducted if rent exceeds Rs. 2,40,000 per annum.
* The tenant deducts TDS @ 10% on rent paid (if rent exceeds threshold).
* The landlord (your mother) receives rent after TDS deduction and gets a TDS certificate (Form 16B) from the tenant.

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### 2. **Exemption from TDS / Lower or Nil Deduction**

* Your mother **cannot avoid TDS by submitting Form 15H** here because:

* Form 15H is for **interest income** on deposits, not for rent.
* TDS on rent is mandatory if payment crosses threshold; exemption is not based on total income.
* Losses from trading or other sources do not exempt her from TDS.

* **No specific declaration or exemption form** like 15G/15H is available to avoid TDS on rent.

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### 3. **What to do if TDS is deducted but tax liability is less?**

* Your mother can **file income tax return** at the end of the year.
* If TDS is higher than actual tax liability, she can claim **refund** of excess TDS.
* Losses from share trading (business loss) can be claimed in the return and set off against other income (subject to rules).

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### 4. **Regarding Business Income from Share Trading**

* If share trading is treated as business income (including derivatives like futures & options), losses can be adjusted against other business income or carried forward.
* This does not impact the TDS applicability on rent.

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### Summary

| Aspect | Explanation |
| ------------------------- | -------------------------------------- |
| TDS on Rent to Individual | Deducted @10% if rent > Rs 2.4 lakh/yr |
| Exemption from TDS | No exemption via Form 15H/15G for rent |
| Loss on share trading | Can be adjusted in income tax return |
| Refund of excess TDS | Possible by filing income tax return |

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If you want, I can help you draft a letter or a formal query regarding this to the tenant or tax department. Need that?

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