tds on rent in case of joint ownership

If you have not deducted TDS then the entire amount of rent will be disallowed

The limit prescribed u/s 194I is Rs. 120,000/-. It has been stressed in the provisions that if the aggregate payment for the financial year, which is paid or likely to be paid exceeds Rs. 120,000/-, tax has to be deducted by the payer. On the other hand circular 715 dt 8/8/1995 states that if there are number of payees, each having definite and ascertainable share in the property, the limit of Rs. 1.20 lakhs will apply to each payee/co-owner. In your case since the payee is only one individual Tax is required to be deducted at 15.450% in case of income of the payee less than 10 lakhs and 16.995% in case income is greater than 10 lakhs.

my question is if this will be the case of co then how will we proceed.

Hi Indira, Sorry but are you refering to the Original Question for the case relating to FY 2006-07

Dear Sir thanks for reply but what we should do while the date and time to deposit the tds has elapesed wehether we should deposit the same with interest and penalty. and then whether it will be allowed.

Since u have not deducted tax you will have to deduct the same now and deposit the same with interest. The expenses will be allowed in the year in which tax has been deducted and paid to Govt. treasury. But the interest will not be an allowable expenses.

PLS LET ME KNOW THAT IF AN INDIVIDUAL IS PAYING RENT TO CO-OWNERS (I,.E. 2 PARTIES) AND RENT PAID TO BOTH THE PARTIES INDIVIDUALLY IS BELOW 50,000 BUT JOINTLY IT IS ABOVE RS.50,000/-. IS TDS U/S.194IB APPLICABLE. IS THE TENANT LIABLE TO DEDUCT TDS.