Tds on rent paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2014 Dear All:

We have rent out our premises (one of the floors) to a nationalized bank.

On the rent of Rs 70K per month, they are deducting 20 percent as TDS. To my knowledge, this should be 10 per cent only, as per Section 194I.

Please let me know the correct position as per applicable rules. Is there another rule that mandates higher TDS?

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 November 2014 have you submitted PAN to the Bank or not...in absence of PAN, 20% TDS will be deducted

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2014 Well, we have given the PAN number.

The bank manager, in fact, said something to the effect that above Rs 50K per month rent, TDS of 20% is applicable, and above Rs 80K, TDS of 30% is applicable. And, it is 10% only if rent is below Rs 50K. Is this correct? Or, is she mistaken?

Thanks, again.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 November 2014 she is grossly mistaken.......

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 November 2014 Please ask the bank to show the provision for what they have said. You can show the provision of Section 194I. TDS should not be deducted more than 10%.