TDS on rent and Rent Free Accomodation

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Dear All,

Please give answer to the following problem as soon as possible.

I want to know that in case mentioned below whether i need to deduct TDS and also made taxable the payments by of Rent Free Accomodation.

My problem is that

Our company has taken on lease an Accomodation and paid rent towards it.

But equal amount has been deducted from Employee's Salary for the above amount paid.

Due to this we have recovered the amount whatever we have paid by way of rent resulting into no expenditure being claimed by the company. Now i want to know whether it will be eligible for deduction of TDS or not?

Now my second question is that whether the above amount also qualify for Rent Free Accomodation or not.?

My third question is that whether an employee can get House Rent Allowance and also get the benefit of Rent Free Accomodation simultaneously?

Now what would be the answer to above questiions if the employee provide us the rental receipts showing payment of rent at his own name meanse rent being still paid by the company but rent recipts are on the name of employee.

Please reply me as soon as possible

With Regards,

Sanjeev Gandhi

Tax Consultant

 

 

 

 

Replies (1)
dear mr.Sanjeev, (1) ans of 1st que: since company received rent payable by it from the employees, there is no expenses in respect of lease rent that is company claim as exps. in profit and loss account so there is no need to deduct t.d.s. (2) 2nd que.: i cannot understand your second question. so please clarify it. (3) 3rd. ans: no, employee cannot claim both. besides, no company is fool that it provide rent free accomodation and also house rent allowance.

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