I am paying 150000 p.a. as rent and apart from that i am also paying 45000 as municipal tax in respect of that rented property.
There is nothing mentioned in rent agreement regarding liability for payment of taxes.
Whether TDS is required to be deducted in this transaction?
when landloard file his ITR and showing house property income he can eligble for deduction of Rs. 45000/- of muncipal tax,ie. this liability of muncipal tax on owner of the property not to tenant.
finally you should deduct TDS on 45000 also.
I am already claiming deduction of 45000 as it is clearly allowable expenditure as per income tax
in which section you claim 80GG or ??
It is allowed as business expenses
ok, in this case you can also liable to deduct TDS on 45000
CAclubindia
