I am an Indian citizen renting a place in Mumbai for a monthly rent of 60000 Rs since last 6 months. The landlord is also an indian citizen who is 82 years old lady and I am told that this is her only source of income.
Am I suppose to deduct TDS from the rent that I am paying to her? I am being told that since she is Sr Citizen she need not pay any tax and hence no TDS applicable.
Thanks for your valuable input.
you are liable to deduct TDS @ 10% as the amount exceeds 1.8 lakh
however the counter party (old man) can file his return & take as refund such amount
No exception for senior citizen. As per the Finance Act 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUF (other than those covered under section 44AB of the Act), responsible for paying rent to a resident exceeding Rs 50,000 for a month or part of a month during the previous year. Section 194-IB of the Income Tax Act, 1961 states that for all the transactions, tax @ 5% should be deducted by the tenant of the property at the time of making payment of rent to the landlord
TDS Liability @ 5% on Total Paid in single Installment under sec 194IB
if you don't want to deduct TDS then apply to your AO under section 197 and obtain no deduction or lower deduction certificate
even if section is 194IB you can apply
other members suggestions expected
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