Whether tds deducted or not from car rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2011 Dear Experts

Please HELP ME TO SOLVE THIS QUERY.
1. my client pay Machinery Rent Rs.850000/- & CAR RENT to same person Rs.150000/- ,My client deduct tds only from rent of Machinery but not deduct out of Car rent,they give justification becz car rent amount doesnt cross limit of Rs 180000/-, now my question whether the above justification given by client is proper or not .

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 September 2011 No income tax is required to be deducted at source if the aggregate amount of rent credited/paid or likely to be credited/paid to a single payee during the financial year does not exceed Rs.1,80,000/- from 1.7.2010 (previously it was Rs.1,20,000).

Here amount exceeds Rs 1.8 lacs to the single payee and hence TDS needs to be deducted.

Hari Beldona

Hari Beldona (Expert)
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15 September 2011 TDS-Rent U/s 194I
No income tax is required to be deducted at source if the aggregate amount of rent credited/paid or likely to be credited/paid to a single payee during the financial year does not exceed 1,80,000/- from 1.7.2010 (previously it was 1,20,000).

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