Tds on rent payment

701 views 2 replies

PAYMENT NO                               AMOUNT

1                                                   30000

2                                                  30000

3                                                  30000

4                                                 30000

5                                                 30000

6                                                  30000

7                                                   30000

 

Above payments are rent paid.

i have following issues:-

As by  7th payment  limit is exceeding 180000 i am liable to deduct tax at source under 194I.

Is tax is deductible from 7th payment only as at that time i have crossed the limit of 194I.

Or from the begning by estimating that ret paid by me will exceed 180000

in above situation it is clearly apparent that from the begning that amount will increase 180000,what will be the scenario if i came to know later that my payment will exceed prescribed limit. .

clarify the above matter

i am facing that problem also in 194c. 

 

Replies (2)

If Income from rent exceeds Rs. 180,000/- per year, you will be liable to deduct TDS. If by any chance you could not figure whether the amount will exceed Rs. 180,000/- and miscalculated, then you can make full TDS deduction from the 7th payment.  

in rent case, normally it is clear whether rent will cross the limit or not

So it is advised to deduct TDS from begning of year

but as limit is 1,80,000/- you can take benefit to deduct TDS from 7th payment

But ITO can raise Q for this. So in rent it is advisable to deduct TDS from begning

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