14 July 2010
HELLO, CAN ANY ONE EXPLAIN ME WHY SHOULD I DEDUCT TDS ON RENT FOR THE FIRST 3 MTHS IF RENT AMT IS 13000/- PM . IF TDS IS APPLICABLE THEN PLS EXPLAIN ME HOW, I M CONFUSE B'COZ LIMIT IS 180000/- pa i.e TOTAL 180000/- BUT IN THIS CASE RENT AMT IS 156000/- (13000*12). IF U SAY BEFORE 01/07/2010 LIMIT IS 120000/-pa THEN IN FIRST 3 MTH MY TOTAL RENT NEVER EXEEDS OR EQUALS TO 120000/- THEN HOW CAN I DEDUCT. IT'S URGENT
15 July 2010
well in ur case i think the answer is simple. Firstly if u look at 3 months limit then it says like if the Amount is likely to exceed 120000 in the Yr & in ur case it is going to be Rs. 156000 by the end of Yr hence u need to deduct TDS from the First Month itself.
Not if u Come to post 01.07.2010 situation then it has been raised to 180000 but i discussed the same with some senior consulants & they say that if TDS has become applicable once(i.e in 1st 3 months) then for next 9 months TDS has to be deducted even if Payment is below 180000
15 July 2010
Yes... TDS is to be deduted for 3 months..coz it was likely to exceed the limit (120000)
After that No TDS is to be dedutced.. coz it is less than the limit (180000)..
I don't agree with akhil's post that if one in first three month TDS is deducted then TDS for next 6 months is to be deducted.
Take example of change in TDS rates ..it has to be changed as per the act... we cant say that we were deducting it at some rate and will deduct for balance year on that rate only....
TDS WILL BE DEDUCTED FOR FIRST 3 MONTH BECAUSE IT IS EXCEEDING THRESHOLD LIMIT 120000 P.A . TDS WILL NOT BE DEDCUTED JULY MONTH ONWARDS, BECASUE THRESHOLD LIMIT IS INCREASED TO RS.180000/-
15 July 2010
Dear All, While applying the TDS provision we have to see what provision are applicable on the date of deduction. Accordingly in this situation the older provisions are applicable on first three months, hence that time limit being 120K per annum is likely to exceed on the date of Tax deduction for that period, the TDS should be dedeucted. I agree with Krishan.
15 July 2010
I agree with Mr. Rajesh. When we read Section 194I properly TDS has to be deducted on a particular date (date of payment or due date whichever is earlier). So provisions should be checked on that date only. Moreover it is not necessary that if TDS once deducted then it shall be deducted in other months. If there are changes in the relevant section then apply that section on that given date.
15 July 2010
Agreed with Mr. Sudhansu Aggarwal. Now tds will be deducted for 3 month when limit is cross over rs.120000/- No tds will be deducted june onwards, because limit is not cross over Rs.180000/-
15 July 2010
Hello Sir, I m Still in stage of dilemma, Take an example if u pay rent only for 3 mth in year @ RS 13000/- pm i.e Total rent paid Rs 39000/- in a year then how it is possible to deduct TDS, in the same way i will deduct TDS only when it exceeds the threshold limit, and till june Rent payment does'nt exceeds the limit. Correct me if my opinion is wrong.
15 July 2010
chandrashekhar what u r asking is not the point of dissapproval here. Beacause everyone is satisfied that for first 3 months TDS will be deducted.
What u are asking can be understoood by you if u can get the exact meaning of the Limit of sec 194I. Go & check that out first
Please do not create quetions. Whenever you take any premise on rent their is always a lease deed in which duration for lease is mentioned. Calculate the TDS deduction amount according to that lease deed. If in the deed duration is for 3 months then take 3 months but it is not possible as either you will change the location or renew the lease or close the business.
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