Tds on rent

TDS 1362 views 3 replies

Vis

Software Engineer

25 Points Joined May 2013

Hello,

There is a house in my mother's name. We have made an agreement with a public limited company for a rent of 16500 p/m starting Mar'13.

The company wants to deduct TDS and make the remaining payment.

My mother doesn't have any other source of income and we want to avoid the TDS in the rent. I understand from google that Form 15G can be filed to avoid the tax.

Is there any consequence if my mother files the 15G. She does have other land in her name. Will there be any problem while selling those lands. My mother hasn't filed the tax returns all tthese years and now to avoid the TDS we want to file the form 15G now for the first time.

Also please let me know if i could file the 15G online.

Please advice.

Thanks,

Viswanath

Replies (3)

S.Satya

CA-FINAL STUDENT

68 Points Joined January 2008

Hi,

Before you rush to submit the Form 15G or 15H, make sure that you are eligible. An individual or HUF must satisfy condition .

First, the estimated taxable income for the financial year should be less than the basic exemption limit. This is Rs 2 lakh for individuals below 60 years and HUFs, Rs 2.5 lakh for senior citizens, and Rs 5 lakh for very senior citizens above 80 years.

Check based on your mother age basic exemption is applicable & based on given information total year income is 198000 if renat is increased more than 200000 TDS is applicable if Your mother age is bellow 60 years.

there is no problem in selling of land if submited 15G

Vis

Software Engineer

25 Points Joined May 2013

Thanks Satya.

Could you please reconfirm if the cap is 2 lk or 1.8 lk? Most of the google search says its 1.8lk and tds will be applicable to the entire amount if it exceeds 1.8lk.

If the limit is 2lk,could you please share the official government link where it is mentioned so that i can convince the tentant not to detect the TDS by showing that link. My mother is below 60 yrs .

Thanks,

Viswanath

Ateeq

CA - Final

218 Points Joined September 2008

Hello "Vis",

Apart from your rental income you must consider income from house property also i.e., notional rent. Since you can claim from or among houses any one of your choice as your residential property and on the rest will be deemed to be lent or deemed income.

Hence ensure that if even after considering this aspect if the income is less than the threshold limit then you can get certificate for non-deduction or lower deduction.