Tds on house rent income

TDS 615 views 5 replies

The Geek

mgr

43 Points Joined March 2014

Hi,

I have income of 17k pm from rent payable by 07th of month on house given to company. Rent deed is from 10/03/15 to 09/02/16. tds was deducted from april rent due to me.

As far as I understand 194-I, if income/ likely income during the FY is not greater than 1,80,000 then no TDS can be deducted from the monthly rent due (i.e. full 17,000 have to be paid).

I have calculated rent income for FY15-16 as 17k x 10 + 5275 = 1,75,275.

I strongly belive than no TDS is to be deducted since inc is less than 1.80 lac.

Please guide/ advise plan of action in approaching the rent payer in this regard.

Thanks

Replies (5)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

You don't need to deduct TDS if the lessee does not continue after Feb 16. R u sure he is not going to continue after this date? If so, no need to deduct TDS as threshold limit will not be crossed.

But suppose, the tenant is going to continue, then rent receivable would be ₹2,04,000, in which case TDS is applicable.

Please note that it is rent income accrued/received during the year on which Tds is applicable and not for the period of rental agreement.

The Geek

mgr

43 Points Joined March 2014

no, its until feb 16 only. so for that tds is illegal, right ?

CA Parth Rajendra Almaula

Chartered Accountant

85 Points Joined February 2015

Dear Geek,

The company which has deducted TDS from rent income would have filed their TDS return. So there's only 1 way left i.e. claim the TDS as refund by filing return of income.

Hope you get it.

Thanks

The Geek

mgr

43 Points Joined March 2014

i know i will get the money through it refund. but the thing is that the 17.5k will unnecessarily be locked for one year (apr 15 till 1 month after filing return in apr 16).

my query was that since it is below 1.80 lac, the company should not do TDS in the first place and pay me the full 17k.

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

If so, no TDS is applicable, tell them to pay the difference as the company would not have paid the tax to the Govt so soon n ask them not to deduct from next month onwards