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Rent to Landlord

R.Suresh (Sr. Executive) (394 Points)

19 June 2009

Hi All,

Individuals are paying rent to landlord for the occupying the house as a rent basis, in this, the individuals are paying more than Rs 10,000/- per month to owners in this case my question is

Whether the individual is going to deducte TDS (as per the section 194I) for that. If the individual is a employed in a copmany?

Please clarify me.

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9 Replies

Yashpreet (68 Points)
Replied 19 June 2009

hello ......

if the aggregate amount of rent exceeds rs 1,20,000 per annum then the person is liable

to deduct tds .... but in ur que there is an individual nd employed ..thus he is not fulfilling condition

of 40 lakhs then not liable

R.Suresh (Sr. Executive) (394 Points)
Replied 19 June 2009

Hi Yash,

If the person is getting more than 40 lakh as a salary ?

Becuase in my case the individual is getting morethan 40 lakh p.a. as a salary.

Yashpreet (68 Points)
Replied 19 June 2009

no he is not liable to deduct tds even his salary income exceeds 40 lakhs

because act specifies that if gross turnover exceeds 40 lakhs u/s 44ab ...

that mean act considering only incomes which are liable to be audited

Ashish Sharma (Partner) (30 Points)
Replied 19 June 2009

Provisions of TDS will not be applicable here as the occupation of house is for personal use. TDS provisins get attracted only if the rent is being claimed as a deductible expenditure from business income. Hence even if a business man with turnover exceeding 40 Lakh pays house rent of more than 1,20,000/- per annum, and does not claim it as a business expenditure, then there will be no liability to deduct TDS.

In the given problem, if the lease deed is with the company (employer), then the TDS will have to be deducted.

CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 19 June 2009

An individual is required to deduct TDS u/s 194I if he is carrying on business & profession (liable for audit u/s 44AB) and he claims that rent as expense while calculating its profit. If he is paying rent for personal use than section 194I is not applicable.

Atul Kumar (CA) (504 Points)
Replied 19 June 2009

I absolutely agree with Rashi.

K KUMAR (job) (58 Points)
Replied 20 June 2009

I agree with Mr Yaspreet

Bijaya Kumar Biswal (Accounts Oficer) (23 Points)
Replied 28 June 2012

How can i verify my address from PAN No ? Can u suggest anyone ?

Bijaya Kumar Biswal (Accounts Oficer) (23 Points)
Replied 28 June 2012

Can u suggest me that if the TDS amont has been wrongly credited to another PAN No in stead of my PAN, How can it will be credited to my correct PAN No. Please suggest me ?.