tds whether deductible 194 I?

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Tejas (Querist)
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14 July 2009 Respected sir,
our client m/s XY has paid rent amounting in aggt. rs. 230000 but the payments has been made to 3 different landlords for different premises kindly advise me how should tds be deducted in following case:
2000*12= 24000 in a year to landlord A
9000*12= 108000 in a year to landlord B
8000*12= 96000 in a year to landlord C
pls tell me when all of above were paid in months regularly by m/s XY and they have not deducted any TDS how do i rectify this error ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 July 2009 Since payment to one person is less than Rs. 120,000/- no need to deduct TDS on the same. If payment to one person exceeds Rs. 120,000/- then TDS is deductible even if payment to 3 persons are made for same property.

taxindiaconnect

taxindiaconnect (Expert)
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14 July 2009 Agreed with aditya, A well explained answer.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 July 2009 If there are a number of payees, each having a definite and ascertainable share in the property, the limit of Rs.1,20,000/- will apply to each of the payees/co-owners separately.

Ref:- Circular no. 715 ( question no.21) reported in 215 ITR (St) 16.

In view of this there is no error to be rectified.

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