Dear all,
Company ABC Ltd. ids paying Rent exps. to Landlords Husband & wife. In legal terms property is gifted by husband to wife.
Wife's income will be clubbed in the hands of Mr. Husband. As far as company ABC Ltd., it is booking rent exps. (at Gross Amt) of wife property. TDS for the same rent exps of wife is deducting from Husband's A/c. In addition to it, company also books rent exps. of Mr. Husband for his property after deducting his TDS. TDS certificate is issued to Husband for whole TDS amt.
Points for consideration:
- whether company ABC is violating TDS provisions by not deducting tax of Wife. (Though it actually deducted from Husband A/c)?
- How to match tds return amt. when company ABC will file TDS return stating TDS deducted from Husband & Rent paid to him?
- under whose name TDS certificate should be issued?
- Is it hedache of company to consider clubbing provision of Husband & wife? or directly deduct TDS of wife?
- How husband will be benefited for tax credit of wife at time of clubbing of Rent income of wife; if Comapny deducts TDS of wife & issues certificate under her name?
CAclubindia
