Tds on rent in case of change of rent agreement

As per Section 194I - the new tenant is liable to deduct tax at source if the aggregate of all payments paid or likely to be paid during the financial year exceeds Rs.1,80,000.

You have mentioned that the rent of the property is Rs.1,00,000 per month. Since, the amount to be paid during the financial year will exceed the threshold limit of Rs.1,80,000, therefore the new tenant is liable to deduct tax at source from each payment made by him to the landlord.

Thank You very much Sir

Actually there were an another company taken the same commercial property on rent the average of monthly rent exceeding the threshold limit

We had undertaken the same property after February last week, we had made fresh rent agreement with the landlord and we are paying only the rent for the month of March that is not exceeding 180000 by our side but the average income of the landlord from property let out exceeds threshold limit 

In my view we have to deduct the tds on rent by our side even we are not paying him rent more than 1,80,000 p.a. we are just paying the rent for the month of March that is 100000.  

Am I right Sir ?

But the Finance Manager saying that we dont have to deduct TDS on Rent as we are not paying him more than the threshold limit.

Please if you give me the reference of that case that shall be more greatful to me.

Thanking You

Regards

Ajeet Singh

Email ID:- ajeetsinghrayat @ gmail.com

First Proviso of Section 194I:

"Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed [one hundred and eighty thousand rupees] :"

It is very much clear from the proviso mentioned above that no tax has to be deducted if total payment made by your company to the landlord does not exceeds Rs.1,80,000 during a financial year.

Thank you sir now my doubt has been cleared....