TDS exeption on rent paid to father

My son is working with MNC.

He is paying rent to me.

His company does not allow exemption for TDS at source.

My query are 2.
1) can company refuse not to allow TDS at source ?

2) We are left with claim the refund in filing the return, which will be in our hand after nearly 15 months. Does this come with any interest?

MAYANK BAXI
9377768464
Replies (6)
Quick Summary
This discussion addresses a situation where a son pays rent to his father, but the son's employer refuses to allow TDS exemption at source. The queries focus on whether a company can legally refuse this exemption and if there's any interest on TDS refunds claimed later. The advice clarifies that companies have a legal duty to deduct TDS and cannot make exceptions. It confirms that refunds, when claimed via an Income Tax Return (ITR), will include interest, which itself might be taxable as interest income in the subsequent assessment year.

Mr baxi you must appreciate that tds is a legal duty binding on companies.
they cant make an exception just because your son works there.

If TDS refund is due to you & you file ITR you get the refund with the interest added.

(Tip: This interest on TDS refund is required to be shown as interest income in your next AY) 

Yes a company might refuse to allow TDS.

Yes Interest on TDS will be received
If you receive interest on tds then tds would not be again deducted on such interest
Originally posted by : Mayank Baxi
My son is working with MNC.He is paying rent to me.His company does not allow exemption for TDS at source.My query are 2.1) can company refuse not to allow TDS at source ?2) We are left with claim the refund in filing the return, which will be in our hand after nearly 15 months. Does this come with any interest?

Do you mean the employer (of your son) is not considering rent paid by your son, thereby deducting excess tax at source?

Hi Sir

 

  • Is employer of your son refused to consider this rent amount in Tax calculation?

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