Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Income tax query

nitin (professional) (83 Points)

10 February 2014

I have a query......... If an individual has 40,000 per month as rental income (from another individual-tenant for using as a residence)and 20,000 per month as cash income from private tuition at his home. The individual has 1 lakh saving in PPf. Then Q1. Does his tenant has to deduct TDS? Q2. Does the individual has to pay service tax? Q3. Does the individual has to maintain books of account? Q4. Is the individual has to carry out audit of his accounts? Q5. Does he have to pay advance taxes? Many many thanks in advance for your valuable advice.I am thankful for your valuable time. Regards.

Reply
Follow
Share

7 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 11 February 2014

1) No, TDS deduction not required.

2) No, service tax not required

3) Good to maintain books of accounts

4) No, audit not required

5) Yes, advance tax payable.

Upgrade to CAclubindia Pro. Subscribe Now!

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 19 February 2014

Yes,agree with MIHIR and how much advance tax is payble on which dates is mentioned in the following attached sheet

Attached File : 852544 1288294 clarification.xlsx downloaded: 180 times

nitin (professional) (83 Points)
Replied 19 February 2014

I have heard that if rent is more than 180000 then tds is must by the person paying the rent. Is it true?

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 20 February 2014

Yes,You are liable to deduct T.D.S if rent paid in financial year exceeds rs.180000 provided your business turnover for Last financial year exceed limits specified under sec 44AB and asset should be taken on Rent for business. But in your case it is house taken on rent for your Residential purposes hence T.D.S provisions will not apply!

nitin (professional) (83 Points)
Replied 20 February 2014

Very enlightening reply by Ayyappa Sir. One more thing I want to ask is ,if one hasnot paid any advance tax in the above case till 25 Feb, then what is the panelty and how to go for it.