Hello,
I have been going through the IT website and your forum to understand the treatment of Rental Income from House Property in Section 194I and Section 24. I found the below link in your forum which helps me to an extent.
/forum/tds-rates-and-returns-simplified-268215.asp
However, I have additional questions as below:
- I own a property for which has been leased out to a government organization. My tenant pays out the annual rent of Rs 2,28,000 after deducting TDS @ 10% (i.e. effective annual rent = Rs 2,05,000). Section 194-I states that if the annual rent of over Rs 1,80,000, TDS needs to be applied at 10% - but it doesn't say whether TDS is on the whole rent (of Rs 2,28,000) or on the excess amount (of Rs 2,28,000 - Rs Rs 1,80,000 = Rs 48,000). However, the above URL says that TDS should be applied on the excess amount.
a) Can you please point me towards the section in IT laws which clarifies this question?
b) If the TDS should actually be applied on the excess amount of Rs 48000, then that means that my tenant has been deducting excess TDS from my rent. How do I reclaim this excess TDS?
2. Under Section 24, what amount should I use for "Actual Rent Received"? Should it be the Gross Rent of Rs 2,28,000 or the rent after TDS i.e. Rs 2,05,000?
Thanks!
CAclubindia
