Query on 194I TDS on rent

As per Section 60, where ther is a transfer of income by  a person to another person without transferring the assets from which the income arises, suc income shall be included in total income of transeferor, whether such trf is revocable or not.

Considering the above, the landlord is going to pay tax on such rental income and not the recepients of rent.

u/s 194 I on rent

if landlord of said property has separate owner of their portion, then the claimed exemption of prescribed limit (Rs.180000/-) and TDS is not applicable if amt. below the exemption limit, 

If owner is one of the relative is whole property then tds deducted of first person who recd. the rent first.

Rahul

In all such cases of Rent etc, main key to issues is always "Agreement". As said by many people above, go through rent agreement. Much has already been cited above on TDS issue so I wont talk about that.

However, being internal auditor, you must ensure that if Agreement has no mention of the people whom payment is being made on the instructions of Landlord then such instructions should be available with your client in writing to prove 1) that the payment made to these people was for Rent (in income tax) and 2) on the instructions of landlord (if tomorrow landlord dispute rent payments)

In case your client has no written instructions from landlord, advice him through audit report to get standing instructions from landlord as well as to ratify previous payments made to relatives.

Regards,

Sharad Aggarwal

Landlord can instruct the assesee to make payment to several persons, but it depends upon the facts. If agreement only with the landlord and not with other persons to whom payment has made, then assesee has to deduct the TDS on the aggregate amount paid.  Please check the agreement copy and clarify the issue. 

Dear Sir,

We have 2 office premises in the same building, for which different bills are generated. I want to know the applicability of tds on rent for both the premises.

a. Consider each premises seperately and apply tds rates or 

b. Combine rent amount for both premises and apply tds rates on the same.

Beneficiary of the rent is a single person.

Please advice.

Regards,

Deven

I want to ask if My client have only 9 month agreement with landlord, and the rent is 30,000 p.m. so what is the tax deduction on monthly basis.

I want to ask if my client has only 9 months agreement with landlord, and the rent is 30,000 p.m. So, what will be the TDS on monthly basis.

You have to ascertain -whether the rent to whom you are paying has ownership rights or not.

! ! ! I am trying to tell you is In case of any legal ?s you should be able to convince that you have not acted in collision with the landlord to enable him escape from the Tax records. Though I do not remember those case laws am 100% sure that there were instances where the deductor is penalised for helping the landlord to escape from the tax net.

At the end I am sure what your client is doing is wrong.