Tds on rent

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Bhargav Thakkar

Chartered Accountant

97 Points Posted on 26 February 2016

Dear Sir/Ma'm, My client is individual and paying rent exceeding 180000/- for FY 2015-16. He has not deducted TDS on the same till march 2016 because he was not liable for tax audit till march 16. Now in march his turnover exceeds 1 crore, so now what is the remedy for the same?? shall he deduct TDS for whole the rent for this FY or else?? Please answer early if possible.. Thank you

Replies (2)

Sunil

121 Points Posted on 26 February 2016

No need for TDS this year. The applicability of TDS will be from next financial year. Please go through the second provisio of Section 194-I, which is given below:

Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section :

Ruchi

1075 Points Posted on 26 February 2016

No, not for this FY. But from next FY he will have to deduct tds on all payments wherever tds is applicable from April onwards even if the turnover for next year doesn't exceed 1 crore.

So you must apply for TAN no. now.