Tds on rent

1414 views 7 replies

In case of Redevelopment of Housing Societies, where tenants/flat owners receive compensation in the form of rent as temporary accomodation during the RE-Development period, the Developer (Pvt Ltd Co./Firm) is liable to deduct TDS on the compensation given in the form of Rent.

Now, when the tenant when he pays rent to the landlord (during the temporary accomodation period), if he is liable to Tax Audit, has to deduct TDS if the rent paid is more than Rs. 180000/- p.a.

In this case, there will be double dedcution.

Please advise.

Replies (7)

I dont think that the tenant is requried to pay any rent to the landlord during this period, as the landlord.developer bears all the rent himself.  So dont think that there would be double TDS.

If the rent cheque from the developer is received net of TDS in the name of the member of Society then? He has to pay rent to landlord from his bank account. How to tackle this?

As far as individuals are concerned it is clarified that only if individual is liable for Audit in the earlier year and Rent is paid for commercial use than only he should deduct TDS.

Ok. Is the developer liable to deduct TDS on the rent compensation that he is giving to the member of Society. 

Originally posted by : SHRUTI BUDH

Ok. Is the developer liable to deduct TDS on the rent compensation that he is giving to the member of Society. 

He is only "reimbursing" rent so he is also not liable to deduct TDS on Reimbursement of rent.

HI can you please provide any notification or circular regarding the samne...

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