WRONG TDS DEDUCTION U/S 194(i)a & 194(i)b

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This query is : Resolved

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This discussion addresses incorrect TDS deductions under sections 194J and 194(i) for professional fees and rent payments. The core issue is that TDS was deducted under section 194(i) for rent, even though the property wasn't formally let out by the colleague, leading to an incorrect 'house property income' declaration. The advice suggests declaring the rent received under 'Income from Other Sources' and clarifies that the 80GG deduction is unavailable if the individual owns any property, regardless of its location.

NILAM

NILAM (Querist)
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19 November 2021 Dear Sir,

My colleagues received professional (consultancy) fees, and company also pay him rent.
TDS deducted u/s 194J(b), 194J of professional fees and TDS deducted u/s 194(i)b & 194(i)a of Rent. But rent is a expenses of my colleague not income.

When I am going to the file the return there is show house property income, but actual this is not a income.

Kindly advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 November 2021 How the company pays him rent, when he has not let out his property to company?
If not let out, company should not deduct TDS u/s. 194 I(b) of IT act, on rent paid.

NILAM

NILAM (Querist)
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19 November 2021 Yes Sir,

But sir tds already deducted, now what is the solution for that

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 November 2021 As the client received rent, Income under HP need to be declared, provided he is owner of the property. Otherwise declare it under IFOS.

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NILAM

NILAM (Querist)
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25 November 2021 Dear Dhirajlal Sir,

Thank you,

I will declare rent under other source ,

Can I claim 80GG deduction ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 November 2021 Yes. Provided he doesn't have any house property, and the rent received by him is for factory building.

NILAM

NILAM (Querist)
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26 November 2021 okay sir noted,
He have won property in Delhi, he work in Mumbai, he doesn't have any house in Mumbai, he lives on rent in Mumbai.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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