I am a central govt employee and have rented out my house for rent above Rs.15,000.00 pm. My tenant works for an IT company and I have given my PAN number on request. I have read in from informal source that company will deduct TDS on rent from my tenant for rent above 15,000.00. Is it correct? If it is so, do I have to collect TDS certificate from the company and pay the tax back to my tenant and in turn claim through my IT returns? Pl advice.
Thomas
Dear Thomas,
If you rent the house directly to the company - Then TDS is applicable. Every month company will pay you Rs.13,500 (15,000 less 1,500). And for balance Rs.1,500/- you have to collect TDS certificate every quarter(i.e.for every 3 months)
If the house is rented to employee directly - TDS is not applicable. Employee will pay you entire Rs.15000/-. There will be no question of collecting TDS certificate.
I think I cleared your doubt.
CAclubindia
