Tds deduction on office rent

are you a tax audit assessee?
Deduction is not required under Sec. 194I if the amount is paid or payable by an individual or Hindu Undivided Family. If individual/HUF not liable to tax audit in preceding year.
Secondly as per the breakup of rent provided by you, service tax amount is not included in the definition of rent.
If the rent received in previous year is less than Rs.1,80,000 then no tds is to be made.
Rate of tds under this section is 10%.
Tds is to be deposited On or before 7 days from end of month in which deduction is made where tax is paid accompanied by an Income-tax challan.
An assessee can claim refund of tds by filing return of income after adjusting tax liability if any.

Thanks a lot Harsha.

Just to clarify,

1. I dont come under tax audit (last year annual income Rs 8lac only)

2. I am paying rent (not receiving). There was no rent paid in previous year. Its a new office

 

I wish to understand, if I can claim any tax benefit (like deducting TDS, submitting it now and then claiming refund at the year end). If yes, what should I do for that

 

Hello Hemand,

You are not covered under tax audit, hence you are not required to deduct TDS.

Also, if in future you deduct TDS, you shall be liable to file TDS retirn timely. The benefit of TDS deducted shall be taekn by the person on whose payment you have deducted TDS and not you. as thats not your income but the party whom you are paying income.

 

Got it. Thanks!