Tds on rent

TDS 1283 views 10 replies

Dear Sir,

I wanted to know if we are paying Rs.22,000/- rent per month then it exceeding Rs.1,80,000/- limit of TDS, So we need to deduct theTDS. But the Office owner have not ready to pay TDS amt then what to do?

Replies (10)

U have to deducted it,

however u can wait upto Rs 180,000 limit not cross

try to convince the owner, there is no loss in deducting tds

since it is adjusted with his/her tax liablity

 

 

 

It is recommended to deduct tax monthly only..

other wise ,

once it exceeds 180000 you have to deduct tds on entire amount on next bill for which he definetely will not agree

So it is recommended to deduct tax every month

however he can claim refund of that tds by filing his return of income, if he is having savings enough,

so there is no problem to your owner also

Other wise your exp is disallowed.....  :( 

It would not be allowed as an expense if rent paid is more than Rs. 1,80,000..

 

The only way it can be claimed as an expense is when Rent paid is less than Rs. 1,80,000... so maybe you can pay some amount in cheque and some amount in cash..

jUst confirm whether that property is in joint name or the sole name.if it is in joint name then limit of 180000 applies to both the owners separately.

  1. If the office is in the name of one person then the property can be transferred in the name of 2 family members.
  2. After that rental agreement shall be changed accordingly, company & 2 family members
  3. 2 cheques shall be issued every month
  4. every month rent shall not exceed Rs.15000/-

I hope this is with in the law.

 

Any suggestions........please 

 

Yesbut according to the limits as specified for both the partners...

Originally posted by : ramakrishna



If the office is in the name of one person then the property can be transferred in the name of 2 family members.

After that rental agreement shall be changed accordingly, company & 2 family members

2 cheques shall be issued every month

every month rent shall not exceed Rs.15000/-


I hope this is with in the law.

 

Any suggestions........please 

 

dear what aboout cost involved in transfering the property to another member of the family 



 


YOU ARE REQUIRED TO DEDUCT ONLY IF YOU ARE OTHER THAN AN INDIVIDUAL OR HUF OR YOUR TURNOVER OR PROFESSIONAL RECEIPTS AS THE CASE MAY BE ARE HIGHER THAN THE MINIMUM REQUIRED TO TAX AUDIT U/S 44AB.IF YOU ARE INDIVIDUAL OR HUF OR SOLE PROPRIETOR AND YOUR SALES TURNOVER/PROFESSIONAL RECEIPTS ARE NOT AS MUCH REQUIRED MINIMUM FOR TAX AUDIT YOU ARE NOT LIABLE TO DEDUCT TDS FROM RENT


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