TDS u/s 194I

TDS has to be deducted when rent paid on EACH OF THE ASSET exceeds the limit of Rs.120000.00 and not cumulatively.

i agreed with Sriram

well ...I think its on cumilitive basis, if u r paying the rent to single entiy and no matter what u r letting out.

Mr.Ritesh, I dont see the word "SINGLE ENTITY" in the question.

For individual rent contract

Hi Ajeet,
the TDs on rent will attract only if the payment of rent on any one or more assets to a single person exceeds Rs.1,20,000/-.

Limit is applicable individually.

Suppose Mr A has two houses . He has given one house to Mr X on rent of Rs. 11000/- pm and another house on rent Rs.9000/- pm . Now Mr X shall deduct TDs on rent ,because total rent pais exceed Rs.120000 PA. Mr Y will not deduct TDS.

Dear Friends,

The words in Section 194I speaks about the amount paid by way of rent by one person to another and speaks about aggregation of such amounts also. Such being the case, it appears that all items of rent payable to a single party, have to be aggregated to reckon the limit of Rs. 1.2 Lakhs for making TDS. It may not be fair, if aggregate payments exceeding Rs. 1.2 Lakhs are omitted for the reason that each of the individual items are falling short of the overall limits. Infact, TDS itself is a notional estimated tax component, and is made only for the purpose that the recepient has to account for those receipts at the time of filing his individual returns and for enabling the government to monitor the same.

Good Bye! Cheers!!

Ya, I also believe that this limit of Rs.120000 is applicable to all assets in aggregate. In recent May,07 exam of Final also this view has been taken. Thanks to all.