I am paying Rs. 80,000 rent per month. There are 2 landlords and each landlord's share is Rs.40,000. Do I need to deduct TDS on Rent paid u/s 194IB ? Does the section mention anywhere whether the limit is per property or per PAN ?
Also, please note - the 40,000 share of rent is not mentioned in the registered agreement.
Since the rent payable to each landlord (₹40,000) does not exceed ₹50,000 per month, you are not required to deduct TDS under Section 194-IB. The threshold limit of ₹50,000 per month is per PAN (per landlord), not per property. If the property was owned by one person and you paid them ₹80,000, you would have to deduct TDS.
According to income tax principles, if the agreement is silent on the specific share of each co-owner, it is assumed that the co-owners have equal shares in the property and, consequently, equal shares in the rental income. Since your calculation is based on equal shares (₹40,000 each), this holds true.
Note: To avoid any future disputes with the tax authorities, it is highly recommended to have a supplementary agreement or a clause in the main agreement specifying the ownership ratio.
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