Tds on rent

Hello Narendra

As per section Section 194-I of the income tax act, TDS is payable only if the amount of rent is equal to or greater than 120000 during the financial year.

Hence in the above case,

Rent on Building 1 - Rs.15,000.  TDS deducted as applicable

Rent on Building 2 - Rs.3000. TDS not deducted.

is absolutely fine.

Regards

Rahul Gupta

There is no need to deduct TDS on Building 1.

Hi,

You are paying totally Rs.18000/- Pm to your Landlord. You are deducting TDS for Rs.15000/- that is fine and rest of Rs.3000/- also you have to deducte the TDS becuase the section says that the rent amount is below Rs 12000/- annual you are not to deduct the TDS or otherwise you have to deduct the TDS. In your case

You are giving chq amount of Rs.18000/-Pm annually 2,16,000/- the section saying that more than Rs 120000 u will dedcut Tax, so you are going to deducte Tax on 3000 also.

If you are paying different part than your decision is okey or otherwise you are going to deduct Tax for 3000 also. becuase the section is not mention the area only amount of payment to a singal party.

R. Suresh is Right

If 15000 & 3000 is per month amt then TDS Should be deducted on both.

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If you are paying separate cheques for both the amounts, then TDS will applicable only on Duilding I only. anyway it is advisable to deduct on both the rents.

S Gopal Sir,

If both the cheques issued to 1person then also TDS on Building 1 not applocable??????

194-I reads as follows "rent paid to....." there fore if you are paying rent to a single person in excess of 180000/- per year even if for 2 or more buildings need to deduct tds at 10%

As per Sec-194I if rent payable or paid is rs120000/- or Higher tTDS should be deducted @ 10% on the whole of the amount

Originally posted by : P.Narendra Kumar
	Hi Friends, a client paying rent for two buildings to a same owner. rent on Building 1 - Rs.15,000. and TDS deducted as applicable Rent on Building 2 - Rs.3000 and TDS not deducted. my question is whether tds on rent of Building 2 to be deducted or not ???????? Please guide me with relevent section / case law / or any other proceedings

With respect to reading of Sec.194-I , if you are paying rent to a single person in excess of 180000/- per year TDS needs to be made on whole amount. Beacuse, the text of Sec.194-I begins with 'rent paid ...."

U/s 194I, ‘any income by way of rent’ credited or paid ‘to the payee’ exceeding Rs. 1.20 lakhs attracts TDS.

i.e. Threshold limit is applicable ‘Payee wise’ and not ‘Premises wise’

Hence TDS to be deducted on Rent for Building 2 also.

TDS has to be deducted on both properties

Section 194 I states that tax is deductible from payment by way of rent if such payment to a "payee" exceeds 120000