Tds on rent
This query is : Resolved
07 April 2016
The Total Rent we are paying is 19000/-Pm (so, 228000/- annually which exeeds the TDS exemption limit of INR 180000/-)
but as per Landlord the above rent is divided into 3 partners i.e. Partner A- 13300/-, Partner B- 2850/- & partner C- 2850/- as it is joint property and we are currently paying rent of 19000/-pm in joint account. We deducted TDS on rent
But now the landlord is claiming that TDS should not be deducted as their (3 patrner's) individual share in rent does not exceeds the TDS limit of 1,80,000/-
whether contention of landlord is justified to not to deduct TDS or we have to deduct TDS and he is also claiming for property tax
but as per Landlord the above rent is divided into 3 partners i.e. Partner A- 13300/-, Partner B- 2850/- & partner C- 2850/- as it is joint property and we are currently paying rent of 19000/-pm in joint account. We deducted TDS on rent
But now the landlord is claiming that TDS should not be deducted as their (3 patrner's) individual share in rent does not exceeds the TDS limit of 1,80,000/-
whether contention of landlord is justified to not to deduct TDS or we have to deduct TDS and he is also claiming for property tax
07 April 2016
Is there any rent Agreement with you ??
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07 April 2016
If it is joint property and rent agreement also clearly mention 3 partners share ,than limit to be considered for each Co -owner rent exceeds Rs.180000/-
07 April 2016
Even if rent is shared by 3 joint owners but they want a single cheque of INR 19000/-pm for rent in favour of their joint bank account..in that case is tds applicable.or not?
07 April 2016
Give 3 different cheque, even though if it is joint account to avail threshold limit issue 3 cheques. Let them deposit in joint account .
07 April 2016
Yes we even issued 3 cheues but they refused to accept those 3 chqs nd arguing to issue a single chq so in that case is tds applicable?
Anyways thank you so much :)
Anyways thank you so much :)
07 April 2016
I don't think so you can claim Treshhold limit of Rs.180000/- If you paid single cheque, safer side better you have to do TDS .
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08 April 2016
Yes, agree with kaviraja sir, you have to deduct tds for paying rent by single cheque also if you have prepared agreement with 3 different person with sharing percentage and rent amount then they have to accept amount in 3 different cheques there is no issue. they are receiving full amount with 3 different cheques..thats not a big deal....Landlord will have to accept the situation of company how they avoid such tds rules and not done any deduction...!!!
Tell landlords to accept 3 cheques in different name and enjoy non deduction otherwise tds provision will attract.
Tell landlords to accept 3 cheques in different name and enjoy non deduction otherwise tds provision will attract.
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