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Tds on rent

TDS 1367 views 7 replies

SHRUTI BUDH

38 Points Joined May 2012

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)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

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.

SHRUTI BUDH

38 Points Joined May 2012

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?

CA Mahavir Shah

Practicing Chartered Accountant

1130 Points Joined January 2013

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.