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Individual paying rent to individual

Tax queries 747 views 2 replies

Viswamohan

Micro Finance

44 Points Joined January 2009

If an Individual is paying rent to an individual Rs.15000/- per month. Eg. Mr.X is paying rent to Mr.Y. Is TDS to be made.If so , what is the percentage and how can we file the IT returns and rent is the only source of income to Mr.Y. Kindly suggest.

Regards

Viswa Mohan

Replies (2)

Sorabh Gupta

Manager ( Taxation )

877 Points Joined July 2008

Dear Friend

As TDS on rent is deducted u/s 194I but it doesn't applies on invidual . So in above case no TDS .

Guest

True...Mr.Saurabh is correct.

No TDS unless and until the person paying rent is liable for tax audit under section 44AB.

IF TDS is deductible rate will be 15%(plus EC). Mr. Y will file the ITR showing income under the Head House Property and can claim TDS deducted in his return from tax payable.

>>Vipul Garg