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TDS U/S 94I

harish .k (STUDING) (306 Points)

03 February 2011

Hi to all

I have a query regarding TDS applicability on Rent payment as the Monthly rent is Rs 30000/- but the amount of 30000/- is divided in to 3 equal parts (10000 each ) is credited every month . in there family members itself

My query is whether TDS u/s 94I is applicable when the Gross value exceeds Rs 180000/-pa TDS @ 10% is applicable na , so in the present case TDS is applicable in the Owners name i,e ( owner of the building ) as deemed owner or it not applicable as the individual a/c is credited with 10000/- each with in the limit

plz reply soon

Thanks in Advance

Harish

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10 Replies

VENKATA RATNAM NUNNA (SAP Consultant) (50 Points)
Replied 03 February 2011

In this case as there are three joint owners and as the rent is directly credited into their account, and the rent paid to each Co-owner does not exceed the limit Rs 1,80,000. there is no need for tax deduction u/s 194I

ashoka r d (senior audit assistant) (82 Points)
Replied 03 February 2011

the section relating to rent for tds purpose is 194I:provision is -the total annual limit is rs.180000 individually and in your case, becuase of the amount is less than the limit of rs.180000 no need to make tds

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 February 2011

Originally posted by : harish .k

Hi to all

I have a query regarding TDS applicability on Rent payment as the Monthly rent is Rs 30000/- but the amount of 30000/- is divided in to 3 equal parts (10000 each ) is credited every month . in there family members itself

- if u get three rent receipts from three landlords then its rent to three persons and would be accounted seperately always, but in case of single rent bill , the 1st name will be taken in account. and others will be joint names mere.

My query is whether TDS u/s 94I is applicable when the Gross value exceeds Rs 180000/-pa TDS @ 10% is applicable na , so in the present case TDS is applicable in the Owners name i,e ( owner of the building ) as deemed owner or it not applicable as the individual a/c is credited with 10000/- each with in the limit

plz reply soon

Thanks in Advance

Harish

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8143 Points)
Replied 04 February 2011

AGREED, IF IT IS THE CASE OF CO-OWNERSHIP AND RENT PAID DIRECTLY AND SEPRATELY IN THEIR ACCOUNTS. THEN NO TDS WILL BE DEDUCTED.

THRESHOLD LIMIT WILL BE CHECK INDIVIDUALLY.

Pooja Verma (Chartered Accountant) (38 Points)
Replied 04 February 2011

Agreed with what C.A Bijender Bansal said..

Pothuganty sudheer (Consultant, C.A, C.S) (411 Points)
Replied 04 February 2011

Threshold limit is to be considered individually and i agree with the above views posted.

harish .k (STUDING) (306 Points)
Replied 05 February 2011

Thanks for ur replies ..........every one

kapil (Business analysis) (107 Points)
Replied 05 February 2011

Sec 194 I : Section say ,IF IT IS THE CASE OF CO-OWNERSHIP AND RENT PAID DIRECTLY AND SEPRATELY IN THEIR ACCOUNTS. LIMIT WILL BE CHECK INDIVIDUALLY

ravitheja (CA Final) (77 Points)
Replied 05 February 2011

hiiiiii

if the agreement of rent clears specifies payment to co owners independently then no need to deduct TDS but if the agreement remains silent about the payment method then TDS has to be deducted andor the co owners are assessable as AOP and TDS is deductible

srabanti malakar (4 Points)
Replied 13 April 2017

Please let me Know if we make the payment of Rs 40000/- (Single payment) u/s 94i Should i deduct the TDS or not applicable as the Threshold limit Rs 180000/-