Tds on professional help and tds on rent

Hello Professionals, I am a individual unmarried freelancer earning near 14lp filing ITR4 under 44ada.

This year I am planning to hire a person to help share my workload. I have a query regarding TDS. I will be paying him 15-20k per month. So do I have to deduct tds from his fee, since he will be earning 1.8-2.4 lpa which is under basic exempt income.

I have another query regarding Rent of the place.

I work from my fathers houses' 1st floor about 800sqft. what should be appropiate rent that I should pay. I am thinking about 15k per month. and also do i have to deduct tds on it? I read somewhere that TDS is to be deducted bysalaried people when monthly rent is 50k . so could I pay more than 15k per month without tds?

EDIT:I dont know if this is relevant but I will be paying rent and professional invoices though net banking not cash

Please guide me.

Thank You,

Replies (4)

Hello Ranjit.

1.to deduct TDS one should have TAN , TDS can also be Done with out TAN , But provided we need to obtain it as soon as possible because TDS amount shall be deposited against TAN.

2. TDS is not necessary if the person total income is below basic exemption limit, though if he has income above BEL ask him wheather he has any Chapter VI-A qualified deductions

3. TDS on Rent section 194I is not Required as 15000*12=180000/- section applies if it exceeds 180000/- i suggest if u want to give more rent give 14K as rent and 5K as maintanance.

1. No TDS applicable for payment (amount BEL) to your assistant.

2. Go with market rate, prepare rent agreement.... no TDS upto 50K PM

Thank you Shaik Sharief,Dhirajlal Rambhia for quick reply and for clearing things.

I have one off topic question. I want to transfer all of my savings (about 20 lakh) to my mother's bank account, so that she can earn interest on the amount. What would be tax implications on me and my mother(non payer, house wife). And should i transfer all the amount in one go or should i split and transfer the amount over the month. Do I need to create a gift deed?

My father is senior citizen(his income will be rent money and or bank interest), should I transfer saving to his account or my mothers (not senior citizen yet)

Thank You

Yes, you can prepare gift deed and transfer the amount by single cheque  to your mother's account. No tax liability on either as gift received from 'relative'

Mother more suitable, as she will enjoy the interest/earnings from the gifted amount almost without any tax liability.

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