Dear All,
If Mr X is a employee of ABC company and Mr X receiving Rent from ABC co. ABC co. deducted TDS u/s 194I on Rent Payment. Mr X have Loss from house property for the interst on borrowed funds. ABC co. considers Mr X loss from house property while calculating TDS on salary u/s 192.
Can ABC co. considers 194 I tds while calculating TDS u/s 192. Simply can TDS deduted on Rent can be set off or reduced with TDS liablity u/s 192. Pls comment thanks in Advance.
Regards
Mr X should calculate his total taxable income by considering the income from salary & los from HP. If the income is below theexemption limit of Rs 2lacs before considering the deduction under Chapter VI-A, then ABC co should not make TDS on the Rent Paid to Mr X. Mr X should accordingly submit a declaration to ABC & Co not to deduct TDS or deductd TDS lower rates.
However if the income exceeds the exemption limit, then ABC co needs to make TDS on rent paid to Mr X. The TDS on rent paid can't be set-off against rent on Salary.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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