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Tds on house property income

Aam Adami (Executive) (24 Points)

26 August 2011

Respected membres,

I have a query:

A is getting lease rent from a company @ 18000/ per month which is the only income of A. Company is PAYING AFTER deducting the TDS @ 10% then what A should do to avoid Tds.

Total income of A for fiscal year 2011-12 is Rs.162000/-only which is lease amount of nine months(18000X9).

Please suggest.

thanking you all in advance.

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9 Replies

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 26 August 2011

The company is not liable to deduct TDS ion the rent of Rs. 162000/- in the fiscal year as the limit of non deduction as per 194I is Rs. 180000/- per annum. Therefore in FY 11-12 no TDS has to be deducted. This point may be brought to the notice of the company. Next year is the rent continues, then TDS liability may arise.

CA Mayank Tulsyan (B.Com(H), ACA) (274 Points)
Replied 26 August 2011

Rajgopalakrishnan sir is right... TDS u/s 194I is deductible only when income goes beyond Rs 180,000 p.a. in a financial year. (earlier the limit was Rs120,000.)

Namita (Self employed) (28 Points)
Replied 27 August 2011

I have a doubt here. How the Company paying rent will know that this is the only income and what evidence can you provide for that.

What I believe the Company will pay after deducting TDS as per rule that is 10% of gross amount and after the end of financial year, they will provide you form 16A, you can claim the amount deducted as TDS from Governemnt after filing income tax. Experts opinion please.

Ashvin Bhanderi (ACCOUNTANT) (59 Points)
Replied 27 August 2011

Reply of Namita Medam...

U hav 2 provide form 13 OR form No. 15 (G) Or Form No. 15(H) for Senior Citizen 2 co. 4 not deducting tax or deducting tax @ lower rate as the case may be...

Namita (Self employed) (28 Points)
Replied 27 August 2011

Hello Mr Ashwin

Does it apply to senior citizen or for other person too.

Anil Mishra (AUDIT INCHARGE) (40 Points)
Replied 27 August 2011

yes namita madam it apply only senior citizen after 60

(Guest)

Friends

Form 15G/H is not applicable in case of rent - Section 194I.

Mr. Rajagopal is right.

thanks

https://taxbykk.blogspot.com/

Ankit (Final Student) (101 Points)
Replied 28 August 2011

Hello Kaushal sir,

You are right that Form 15G/H is not applicable in case of rent. But in this case I think the assessee can apply in form 13 to assessing officer which directly issues the certificate to the income payer for lower deduction or no deduction of tax.