Hi,
We are a company paying rent to different parties. U/s. 194 I specifically says that if the Rent paid is more than Rs.1.20 L per annum then the tax should be deducted.
We are paying Rent to some different parties.
Name of the payee Category Rent TDS status
Mr. X Residential Bungalow (for HO) Least Rent Rs.1 L Deducted
Mr. Y Guest House Monthly Rent Rs.10,000 Not deducted
Flat Owners Welfare Association Residential Apartment (for Branch) Monthly Rent Rs.10,000 Not deducted
Mr. Z Lunch Room – I Monthly Rent Rs.4,500 Not deducted
Mr. A Lunch Room –II Monthly Rent Rs.4,500 Not deducted
With reference to the www.taxworry.com website, Rent paid should be taken as an AGGREGATE BASIS. So, I brought to the attention of my auditor (as I’m the internal audit assistant), but he is explaining that the Rent paid is not more than Rs.1.20 L p.a. to an individual AND it should NOT be taken as AGGREGATE BASIS. So the TDS not to be deducted. What about Flat Owners’ Association case? Is it liable to TDS?
Experts’ opinion pl.
CAclubindia
