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TDS on Rent/Lease

R Kapoor (Pro) (26 Points)

05 May 2010

I am an INDIVIDUAL paying monthly rent of Rs. 20000/- to the owner of the house who is also an individual.

Do I have to deduct TDS from the rent I pay to the landlord? If so, how much?

R Kapoor

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10 Replies

Rama Krishna (Accounts Executive) (70 Points)
Replied 05 May 2010

Hai, Being you are individual, no need to deduct TDS on the rent being paid to your landlord.

Piyush Jain (CA) (283 Points)
Replied 05 May 2010

TDS is basically deducted to claim an expense. If you are claiming it as an expense and you are liable to audit, then you have to deduct TDS othewise not.

Regards

Piyush

(Guest)

Since you are paying rent to house you are not suppose to be claim it as expenses. So TDS provision does not apply.

If you use such house for business and going to claim it as expense then

you are liable to deduct TDS if your total turnover exceeds Rs.60,00,000. ( That is you are liabled to get your books audited under section 44AB).

Amir (Learner) (4016 Points)
Replied 05 May 2010

Hi,

Sathyanarayan Bro. has correctly specified the treatment...

Just want to add If payee is a Non resident & such rent is taxable in India then TDS has to be deducted irrrespective of turnover limit or rather irrespective of business/profession because then Sec 195 comes into picture.....

Sudheer Reddy (Emp) (84 Points)
Replied 05 May 2010

Vivek Jarial (Student) (272 Points)
Replied 05 May 2010

yeh iam agree with amir...

Vivek Sinha (Accountant) (29 Points)
Replied 06 May 2010

If u r going 2 deduct TDS on Rent u must have TAN number.

Sravani Sureddy (ca- looking for job) (74 Points)
Replied 06 May 2010

yes tds has to be deducted on rent paid @ 10%

CA Mohit kumar jain (Searching Source of Money) (149 Points)
Replied 07 May 2010

if u are liable to audited ur accounts then mendatory to deduct tds other wise not

CA.N.VENUGOPAL (PROPRIETOR) (30 Points)
Replied 10 May 2010

Since the payment exceeds Rs.150000/- per annum, and If you use such house for business or profession and going to claim it as expense, and your books of accounts are liable to get audited in the preceding financial year then you are liable to deduct TDS @ 10%.