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Tds on Guest House

Chenna Reddy (Sr Accounts Officer) (24 Points)

17 April 2009

Dear All,

We are providing an accommodation for our employee in a hostel for a monthly rent of Rs.11500/-. Please help me that, I have to deduct TDS or not, if yes what is the rate of TDs.

Thanks / regards

Chenna Reddy

Cell: 098481-61440

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2 Replies

SNEHASREE (ARTICLED ASSISTANT) (102 Points)
Replied 17 April 2009

YOU HAVE TO DEDUCT TDS UNDER SEC194 I. SINCE TOTAL PAYMENT FOR THE FINANCIAL YEAR EXCEEDS RS.120000. TDS RATE: IF PAYEE BEING INDIVIDUAL AND HUF: 15.45% IF PAYEE BEING OTHER THAN INDIVIDUAL AND HUF: 20.6%

silky jain (chartered accountant) (167 Points)
Replied 17 April 2009

As per sec 194I person paying rent tor esident is required to deduct TDS .whether payment is made under any lease ,tenancy or other arrangement.It is immaterial whether such building is owned by the person to whom rent is paid.

Rate

Recipient is Individual Or HUF-15%= 3% EC

Recipient is any othr person-20%+3% EC