Tds on rent above 50k a month & split

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 I have a question for you. I am planning on renting a residence in mumbai for rs70k a month. I have two questions. Ia am a salaried individual

1. In a company lease TDS is deducted. Is TDS deducted in a personal lease ?

2. The land lord wants to break up the lease into a par rental 40k per month and part payment for funiture 30k per month so that he saves tax. Does it imply that i can use HRA tax benefit only on 40K (which is the rental excluding the furniture tax)? Or will i be able to get tax deduction on the entire 70k net of 10% of basic?

Thanks
Sujay

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 July 2012 In a pesonal lease taken by an employee assessee TDS is not deductible on the rent payable by him.
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You can use only Rent paid for flat and not for furniture for calculating exempt HRA .
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The rent paid in respect of furniture has to be borne by the assessee employee.
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CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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21 July 2012 Although you are not required to deduct TDS, but you will be required to give the PAN of your landlord (as the monthly rent is above INR 15K)

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 Thanks a rlton Amit and Paras