194I

As per My opinion TDS should be deducted on Arrears Rs.1400 + rent of current Month.

  As TDS is based on the payment, and even though for the previous year, as the amount you pay this year is exceeding the limit,you have to deduct TDS... and hey, its better to deduct TDS than not at all deducting and getting penalised by the department right? do go ahead, deducting TDS is your birth right.. ha ha

Dear Poornima,

 For FY 07-08 : as mentioned first time payment was made for Dec 07 i.e. it will not cross the basic limit of 1,20,000/- for TDs even if it is raised from 9000 to 10400 hence NO TDS reqd to be deducted for that year.

FOR 08-09 : when it was below the limit TDS not Deducted now deduct the TDS on 10400/- and pay it to the Govt since liability to pay TDS arisen now on increse the rent amt (Same applies to FY 09-10 also)

Thanks & Regards

Hitesh

DEAR POORNIMA,

WHATEVER AMOUNT YOU ARE PAYING THIS YEAR (INCLUDING ARREARS) DEDUCT TDS ON THAT AMOUNT MONTHLY @ 15.45% TILL THE PAYMENTS MADE UPTO 30.09.2009 AND @ 10.3% ON PAYMENTS MADE ON OR AFTER 01.10.2009

REGARDS,

RITESH KOTHARI