Hi,
According to the agreement between me and the flat owner, it states that I have to Pay Rs. 17500 per month as rent.
So according to the Income Tax Laws, I'm supposed to cut TDS @ 10% on the monthly rent at the time of payment (As total Rent Payable during a Year is more than Rs. 1,80,000p.a.)
But the owner is refusing to let me cut the TDS due to following reasons:-
1. He says that He is over 80 years of age and is involved in Agricultural activities and doesnt understand the laws
2. He doesnt file his income tax returns
3. He states that I had not informed him before the agreement that I will be cutting TDS as per law
Other relevant Points:-
a. I pay my rent monthly before due date via NEFT after deducting 10% TDS amount to the account details mentioned in the agreement.
b. The owner has not furnished his PAN no.
c. The owner does not want to fill Form 15 H either saying he does not understand such forms, but from what I can ascertain he is scared of revealing anything at all to the Tax Authorities.
Due to the above predicament, the owner has started depositing the security cheques given to him although the rent has being paid up to date.
As the account is my secondary account I do not keep any amount except the required MAB and thus the cheque has bounced.
What should I do in the above Situation to avoid any legal hassels and to smoothen things out.
Thanks in advance for Your Help!
CAclubindia
