Tds deduction on rent....

TDS / TCS 967 views 2 replies

v dcvs

Software

112 Points Posted on 28 March 2012

DERA SIR,

RENTED AN INDUSTRIAL LAND . TENANAT NOT DEUCTED TDS FOR THE RENT 30 K PER MONTH AS IT IS CROSSING THRESHOLD LIMIT FOR THE FY 2011-2012.

MAY BE DUE TO TO THE FOLLWING HE HAS NOT DEDUCTED AND WOULD NOT BE LIABLE TO DEUDCT TDS

(An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him exceeds the monetary limits(Rs.60,00,000 in case of business & Rs.15,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during the preceding financial year shall also be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.)

IF YES, IS THAT CORRECT AND IF NOT WHAT IS THE LAST DATE TO DEPOSIT TDS FOR FY 2011-2012?

WHEN CAN HE DEDUCT THE TDS ON RENT FOR THE FY 2011-2012 ABD SUBMIT?

WHT ARE THE LAST DATES OF FILLING TDS FOR FY 2011-2012?

THNX IN ADVANCE

Replies (2)

Bhanu Prakash Rao

Think Beyond Stay Ahead...!

1069 Points Posted on 28 March 2012

as you said individual no need to deduct TDS if he is not covered under Sec 44AB. TDS on rent will be deducted in the month for which you are paying and payment will be made with in 7th of following month ( for March its 30th of April). TDS returns needs to be file quarterly with in 15th of following qurater.

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Posted on 28 March 2012

Mr.V DCVS

You have not clearly mentioned the staus of the tenant. Stauts means here whether the tenenta is -

(i) An Individual

(ii) A Hindu Undivided Family

(iii) A Company

(iv) a firm (Partnership Firm)

(v) An Associaton Of Persons (AOP) or a Body of Individuals (BOI) - Socieities or Trusts, Associations Etc.,

(vi) A Local Authority

(vii) Every Artificial juridical Person, not falling wihin any of the preceding sub-clauses.

I presume on reading your question that you are of the opinion that your tenent is an Individual or a HUF whose accounts were not subjected to Audit u/s 44AB of Income-tax Act, 1961in the earlier year. If your opinion is correct there is no need to deduct tax at source for the year under consideration.

Though if your tenent is an Individual or a HUF whose accounts were subjected to audit u/s 44AB of Income-tax Act, 1961 for the earlier year your tenent is under legal obligation to deduct tax at source.

If your tenent is not an Individual or a HUF that person (please do not misunderstand the word person to be an Individual) here person means a Firm (Partnership Firm), A Company etc., as explained above is under legal obligation to deduct tax at source though the accounts of such tenent were not subjected to audit u/s 44AB in the earlier year.

If your tenent is under obligation to deduct tax at source and if fails to deduct the tax at source before the end of the financial year and deposit the same to the credit of Government the expenditure incurred by your tenent towards rent will not be an admissible expenditure.

Your tenent will have to pay interest on the amount of TDS if your tenet is under obligation to deduct tax at source for the reason your tenent has failed to deduct tax at source and deposit the same to the credit of Government as expalined by Mr.Bhanu Prakash.M.

Best Wishes

Sathikonda