An assessee is paying monthly rent of Rs.150000/- and deducting TDS also. The landlord is sending him two separate bills , one for Rent and one for Common Area Maintenance charges. The maintenance charges are 3000/- p.m. which comes to total 36000/- for the year and which does not exceed Rs.50000/- for the year. Will maintenace charges subject to TDS...?
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TDS on Rent
Replies (3)
Dear Lalit Mohan,
The true test in this case would be whether Contract for Maintenance is separable from rent agreement or not...
Case 1 TDS WILL BE CHARGED U/S 194 C AS SEPARATE CONTRACT
In following two cases Contract for maintenance WILL BE SEPARABLE
1) Contract for maintenance is optional OR
2) Tenant can give contract to a person other than Landlord
CASE 2 TDS WILL BE CHARGED U/S 194 I ALONGWITH RENT
Other than above cases Contract for maintenance will be termed as INSEPARABLE and TDS WILL BE DEDUCTED AS RENT..
yes Amir is right...
Totally Agree with Amir
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