If a company takes a house on lease from an employee and gives it back to him for his stay and pays him rent for it.Should the tds be deducted u/s 192 or under sec 194I. Whether rent received by employee will be taxable to him under the head salaries or house property.
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tds on rent to employee on house hire from him for him
Replies (2)
In order to decide whether section 192 applies or 194I, you have to study the agreement between the employer and employee. It depends on case to case basis and we cannot come to a conclusion without considering the lease agreements.
Helo Pooja!!
The kind of lease you are talking about is generally known as self lease which means " the property owner is employee and employer takes this property on rent from employee then again given to employee for residing for which employer pays rent to him "
In the case of self lease the rent paid to the employees would be taxable in the hands of employees as house property income, for which company is liable to deduct TDS u/s 194I.
The accomodation provided to the employee would be treated as perquisite in the hands of the employees and employees are liable to pay tax on the same as per normal provisions.
In this case there would be double taxation.
Thanks & Regards
Rajat Singhal
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