Query on 194I TDS on rent

if the rent and portions are divided for each individual in property then each would qualify for separate land lord, otherwise the TDS applicable on gross and would be deducted from main landlord or the 1st receipent in the list. 

Mr.KALYAN 

Acc to me aggregate payments made to the relatives on behalf of landlord is taxable in the hand of landlord only and all tax provisions would be applicable to him only.

Because mere payment doesn't mean income of a particular person.  

Thks for reply.....

Mr Sharma-- your point seems to be logical.... but how its possible to know if there are any co owners to the property and as a landlord ...he will not wish to share his agrrement.... if tds is not deducted the payer has to suffer while tax audit not he payee (landlord)..

Ms Neha,,,, are u referring to any clubbing provisions...

According to me.

If your client have rent agreement with only one landlord and no other persons are involved in the agreement then you should consider all payments together and should deduct TDS. On the other hand, if your client has entered into a rent agreement which itself shows that particular amount shall be paid to different persons, then you can consider all of them different. I mean to say that If agreement implies all of them as different landlords.

I am not sure whether you should consider their co-ownership, if any. The reason is that in this case he is owner but in many cases he may not be the owner and he may have sublet the property.

Let me know if I am wrong anywhere.

Dear Frends,

In the above mentione d case the deduction of TDS depends upon the rent agreement and the fact of the case.

if the recievers of the rent are the joint owner of the property on proportionate basis then and the rent agreement specifies that those  individual will recieve the rent for their part of ownership in the property, then the amount of TDS will not be deducted from the amount of rent paid ro each of them.

But in absence of any such agreement and where the recievers of rent are not owner of the property then it shall be deemd that it is paid to one person and TDS shall be deducted from the amount of rent paid.

Two points must be kept in mind that

1. Reciever of rent must heve the ownership in proportionate part of property

2. the same should be specified in the agreement

i think TDS should be done if limit of 120000 PA is breached and it seems a diversion of income from the landlord's side...........your client is paid rent ,provisions of 194 I would come in to play...irrespective of agreement.........

According to Clubbing provisions mere transfer of property income with out transfer of ownership rights the income is taxable in the hands of transferee by this tds is also calculated on agreggate payment to the landlord

In a Trade Fare we have taken Exhibition Hall Treat,  Whether TDS  under Rent or Not?

If all the relatives are the co-owners then limit of 180000/- shall be considered individully. (Amalendu Sahoo V/s ITO 2003 264 (ITR) 16 (Cal).

and if its merely a tax planning, (diversion of rent to different person) then no matter who is the recepient.

None but  the Owner of the property is subject to TDS and limit of 194 I shall be checked accordingly.

If the relatives are not the co-owner and just the recepient of money, then tds shall be deducted in the hand of landlord and, Limit of Rs. 180000/- shall be checked considering the rent agreement. i mean the total amount of rent.