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Tds on rent

P.Narendra Kumar (Article Assistant) (24 Points)

11 March 2009

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

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11 Replies

Rahul Gupta (CA Final Student) (1780 Points)
Replied 11 March 2009

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

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 13 March 2009

There is no need to deduct TDS on Building 1.

R.Suresh (Sr. Executive) (394 Points)
Replied 13 March 2009

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.

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 16 March 2009

R. Suresh is Right

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

S Gopal Rao (Audit Manager) (34 Points)
Replied 17 March 2009

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.

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 19 March 2009

S Gopal Sir,

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

james k p (manager) (21 Points)
Replied 10 November 2010

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%

Love Pumreja (Senior Article) (49 Points)
Replied 11 November 2010

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

Saurabh (Chartered Accountant) (69 Points)
Replied 15 November 2010

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 ...."