harish .k (STUDING) 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
VENKATA RATNAM NUNNA (SAP Consultant) 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) 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 (firstname.lastname@example.org) 03 February 2011
|Originally posted by : harish .k|
- 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.
CA. BIJENDER KR. BANSAL (ACA, B.COM) 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.
ravitheja (CA Final) 05 February 2011
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