TDS 194I

You ought to have deducted TDS on likelihood of rent exceeding 120,000 per annum and deducted every month. When you are signing an agreement, you cannot take sheltr that the amount you paid has not yet exceeded 120,000 and you were not knowing that it would exceed 120,000. In the next ent better deduct what you have not yet deducted.

Hi Sajay

You have to deduct TDS when the Rent exceed Rs. 120000/- p.a. . In your case you have to deduct tax at the time of payment.

but now you can adjust the excess payment of 6 months equal to TDS liability, in the succeeding payment of rent. Rate of TDS is 10% .

You need to deduct TDS @ 15.45% for individual or HUF and TDS @ 20.6% for Company on Rs.1,20,000 i.e. on the rent for 6 months (till sept 09).On the remaining Rs.1,20,000 ,TDS @   10% will be applicable.

Thanks alot !!!

TDS rate is changed with effect from october 1, 2009.

deduct as per new rates