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abhishek (Executive)     04 September 2014

Tds on rent

If  A takes rent from B for two different properites having annual rent Rs. 1,80,000 and Rs. 2.20,000 respectively.

on which amt tds should be deducted

whether on rs. 2,20,000

or

sum of rent of both properties i.e. rs. 4,00,000.... ??????



 12 Replies

CA Saloni

CA Saloni (Deputy Manager-Accounts & GST Consultant)     04 September 2014

TDS is deducted on payment to resident individual, so same person paying rent to same party for 2 different properties, TDS should be on the aggregate amount.

Darshan Pankaj Thakkar

Darshan Pankaj Thakkar (no)     04 September 2014

TDS WILL BE DEDUCTED ON ENTIRE 400000 as the same is paid to single person..B have to deduct TDS
muthu

muthu (audit)     04 September 2014

TDS WILL BE DEDUCTED ON RS.40,000/- FOR TOTAL AMOUNT
 
CA. Sameer Kashikar

CA. Sameer Kashikar (Chartered Accountant)     04 September 2014

Limit is for per person and not per property
Sankaranarayanan

Sankaranarayanan (Accounts & Admin)     04 September 2014

Tds will be deducted for the entire amount
Brahma Nand

Brahma Nand (Finance associates)     05 September 2014

Limit is for per person
sudip chakraborty

sudip chakraborty (accountant)     05 September 2014

Limit is for per peroson
S Bart

S Bart (Manager)     05 September 2014

Dear Sir:

Mine is a Partnership firm. we pay the rent by cheque  on every 10th and deduct TDS and the amount so deducted is remitted to Government within 7 days from the date of deduction.

We do not pay the rent in advance. i.,e the rent for the month of August 2014 is paid on 10th September 2014. My question is what is the time limit available as per law to remit the TDS on Rent to government.

Regards

S Bart

muthu

muthu (audit)     05 September 2014

Income-tax (Sixth Amendment) Rules, 2010 – Substitution of rules 30, 31, 31A, 31AA, 37CA and 37D; Form Nos. 16, 16A and 27D; insertion of Form No. 24G and omission of rule 37A

Notification No. 41/2010 [F.No. 142/27/2009-SO(TPL)], dated 31-5-2010

S.O. 1261(E).- In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1.  (1) These rules may be called the Income-tax (6th Amendment) Rules, 2010.

(2) They shall come into force on the 1st day of April, 2010.

 2. In the Income-tax Rules, 1962, -

(a) for rules 30, 31, 31A and 31 AA the following rules shall be substituted, namely:-

“Time and mode of payment to Government account of tax deducted at source or tax paid under sub-section (1A) of section 192.

30.

(1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government -

(a) on the same day where the tax is paid without production of an income-tax challan; and

(b) on or before seven days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192, where tax is paid accompanied by an income-tax challan.

(2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government -

(a)   on or before 30th day of April where the income or amount is credited or paid in the month of March; and

(b)  in any other case, on or before seven days from the end of the month in which-

(i)         the deduction is made; or

(ii)        income-tax is due under sub-section (1A) of section 192.

(3)  Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:-

Table

Sl. No. Quarter of the Financial Year ended on Date for quarterly payment
(1) (2) (3)
1. 30th June 7th July
2. 30th September 7th October
3. 31st December 7th January
4. 31st March 30th April.
KPAT Accounting Solutions

KPAT Accounting Solutions (B.Com)     05 September 2014

Dear Mr. Abhishek

           T.D.S. is deduct only on payment or bill basis for any financial year, If 'B' are paying the sum of Total rent Rs. 400,000/- to 'A' in a Financial Year then 'B' should deduct T.D.S. on Rs. 4,00,000/- 

Thanks 

CHANDRA MANI TIWARI

 

 

CA Gaurav Goyal

CA Gaurav Goyal (CA)     06 September 2014

You have to deduct TDS on payment or booking whichever is earlier.

In your case booking is earlier. As mentioned in your discussion, for the month of August, booking of Rent expenses is made on 31st August and TDS is also deducted on the same date, hence the payment should be done till 7th of September. But as discussed by you, you deposit TDS till 17th September than an interest of 1.5% for 2 months (i.e, 3 %) will be charged on the amount of TDS.

 

Please rectify the error from next month and avoid the interest payment.

Accounting Home Services

Accounting Home Services (Finance Executive )     06 September 2014

IN CASE OF TDS ON RENT DEDUCT TDS ALWAYS ON EXCLUDING SERVICE TAX.


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