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Tds on rent

Yegnesh P.V (Student) (28 Points)

21 February 2012  

1)  Monthly rent of Rs.20,000 paid to 4 persons by cash

2) Same amount as above paid by cheque but cheque drawn in the name of single person of those 

3) what are the tax implications as far as tax deduction at source  on rent is concerned in the above two cases and in the

      second case if the cheque is drawn on the 4 persons individually and the total rent per month amounts to Rs. 20,000.

      Should be the tax deducted under these circumstances or not? 


 9 Replies

AKASH KHETAN (PRACTICING CA) (37 Points)
Replied 21 February 2012

TDS WILL BE DEDUCTED BY THE PAYER SO IT IS IMMATERIAL WHO WILL RECEIVE THAT.

 

nimish solanki (IPCC CLEARED) (108 Points)
Replied 21 February 2012

As per Section 194I TDS has to be deducted rent paid exceeds 1.8 LAcs in Financial year.The limit of 1.8L is appicable to each of the payee.

Hence in you case if you are paying more than 180000 to any of the co-owner, tds need not be deducted in any of the case.

1 Like

SHARIQUE (Self Employment) (48 Points)
Replied 21 February 2012

Yegnesh,

In both the cases (1 & 2) TDS have to be deducted since the amount exceeds the prescribed threshold limits. The TDS rates shall be 2% in case of plant or machinery, 10% in case of building, land or furniture.

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 22 February 2012

1) If contract is seperate with all the 4 payee and cheque issued/o r cash paid seperatly then NO TDS because each payee on stand alone basis gets amount below threshold limit i.e 5000/- per month each.

2) Payment to single person then definetly it will attract ITDS.

again for the query by you in second case the reply is same a s in 1.

1 Like

Vjay (CA Final Student) (125 Points)
Replied 22 February 2012

TDS is required to be deducted if this payment to 4 persons only  to avoid TDS and those 4 people are not co-owner. 

If those 4 person are co-owner then No TDS is required to be made even if payment of such total amount made to a single person (subject to share of any of such does not exceeds limit specified )

1 Like

CA SUMANTH (LEARNER.....) (294 Points)
Replied 22 February 2012

AGREE WITH CA RITHESH...

1 Like

satish (audit assistant) (21 Points)
Replied 22 February 2012

tds has to be deducted in both the casses as the  yearly rent exceeds 180000, so without having doubt deduct the tds to

Roshan A (Chartered Accountant) (458 Points)
Replied 22 February 2012

@ Yegnesh: Is Rs. 20000Total monthly rent paid OR is it The RENT PAID PER MONTH PER PERSON??

RAM KUMAR GOEL (PROPRIETOR) (87 Points)
Replied 23 February 2012

Originally posted by : Vjay

TDS is required to be deducted if this payment to 4 persons only  to avoid TDS and those 4 people are not co-owner. 

If those 4 person are co-owner then No TDS is required to be made even if payment of such total amount made to a single person (subject to share of any of such does not exceeds limit specified )


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