Tds on rental income
This query is : Resolved
23 October 2011
I AM STAYING AT BANK LEASED FLAT. BANK IS PAYING RENTAL AMT OF RS.16000/- AFTER DEDUCTING TDS. MY FLAT OWNER REQUESTED TO NOT TO DEDUCT TDS. FOR THAT HE HAS GIVEN FORM 15G/15H. PLEASE GUIDE ME WHETHER CAN REQUEST MY OFFICE TO NOT TO DEDUCT TDS.
23 October 2011
The total amount for the year 16000*12 = 192000 is exceeding the limit if 120000 hence the bank is liable to deduct TDS. However, if the landlord requests by producing form 15G/15H then on the basis of the form, bank should not deduct tds.
24 October 2011
Tds should not be deducted if Form 15G/H is submitted, and the exemption limit of rent has been enhanced from 120000 to 180000 w.e.f 1st July 2010.
24 October 2011
Banker can stop deducting TDS on rent payment only when the land lord has produced TDS Exemption Certificate from his jurisdictional Income Tax Officer addressed to Bank not to make the TDS.
27 October 2011
As per sec.197A , if the declaration is submited in Form 15G/15H than no tax is deductible in few case and these are Interest on Securities(U/s193), Interest other than securities(sec.194), National Saving Scheme (sec.194EE) and Interest on unit (sec194K). From above it very clear that in case of TDS on Rent which is covered U/s 194I , sec.197A can not appllied.
27 October 2011
Ranjan sir. Can you get me some ref for this
27 October 2011
Pl clarify
28 October 2011
I have already mentioned Reference of sec.197A of Income Tax Act'1961.now for your ready reference please find below complete details of sec.197A of the Income Tax act.
[No deduction to be made in certain cases.
197A. 31(1) Notwithstanding anything contained in 32[***] section 194 33[***] 34[or section 194EE], no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual furnishes to the person responsible for paying any income of the nature referred to in 35[***] section 194 36[37[***] or, as the case may be, section 194EE], a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that 38[the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
39[(1A) Notwithstanding anything contained in 40[section 193 or] section 194A or section 194K, no deduction of tax shall be made under 41[any] of the said sections in the case of a person (not being a company or a firm), if such person furnishes to the person responsible for paying any income of the nature referred to in 40[section 193 or] section 194A or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
42[(1B) The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax.]
43[(1C) Notwithstanding anything contained in section 193 or section 194 or section 194A or section 194EE or section 194K or sub-section (1B) of this section, no deduction of tax shall be made in the case of an individual resident in India, who is of the age of sixty-five years or more at any time during the previous year 44[***], if such individual furnishes to the person responsible for paying any income of the nature referred to in section 193 or section 194 or section 194A or section 194EE or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form45 and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
46[(1D) Notwithstanding anything contained in this section, no deduction of tax shall be made by the Offshore Banking Unit from the interest paid—
(a) on deposit made on or after the 1st day of April, 2005, by a non-resident or a person not ordinarily resident in India; or
(b) on borrowing, on or after the 1st day of April, 2005, from a non-resident or a person not ordinarily resident in India.
Explanation.—For the purposes of this sub-section “Offshore Banking Unit” shall have the same meaning as assigned to it in clause (u) of section 2 of the Special Economic Zones Act, 200547.]
48[(1E) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10.]
(2) The person responsible for paying any income of the nature referred to in sub-section (1) 49[or sub-section (1A)] 50[or sub-section (1C)] shall deliver or cause to be delivered to the 51[Chief Commissioner or Commissioner] one copy of the declaration referred to in sub-section (1) 52[or sub-section (1A)] 53[or sub-section (1C)] on or before the seventh day of the month next following the month in which the declaration is furnished to him.]
[No deduction to be made in certain cases.
197A. 31(1) Notwithstanding anything contained in 32[***] section 194 33[***] 34[or section 194EE], no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual furnishes to the person responsible for paying any income of the nature referred to in 35[***] section 194 36[37[***] or, as the case may be, section 194EE], a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that 38[the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
39[(1A) Notwithstanding anything contained in 40[section 193 or] section 194A or section 194K, no deduction of tax shall be made under 41[any] of the said sections in the case of a person (not being a company or a firm), if such person furnishes to the person responsible for paying any income of the nature referred to in 40[section 193 or] section 194A or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
42[(1B) The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax.]
43[(1C) Notwithstanding anything contained in section 193 or section 194 or section 194A or section 194EE or section 194K or sub-section (1B) of this section, no deduction of tax shall be made in the case of an individual resident in India, who is of the age of sixty-five years or more at any time during the previous year 44[***], if such individual furnishes to the person responsible for paying any income of the nature referred to in section 193 or section 194 or section 194A or section 194EE or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form45 and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
46[(1D) Notwithstanding anything contained in this section, no deduction of tax shall be made by the Offshore Banking Unit from the interest paid—
(a) on deposit made on or after the 1st day of April, 2005, by a non-resident or a person not ordinarily resident in India; or
(b) on borrowing, on or after the 1st day of April, 2005, from a non-resident or a person not ordinarily resident in India.
Explanation.—For the purposes of this sub-section “Offshore Banking Unit” shall have the same meaning as assigned to it in clause (u) of section 2 of the Special Economic Zones Act, 200547.]
48[(1E) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10.]
(2) The person responsible for paying any income of the nature referred to in sub-section (1) 49[or sub-section (1A)] 50[or sub-section (1C)] shall deliver or cause to be delivered to the 51[Chief Commissioner or Commissioner] one copy of the declaration referred to in sub-section (1) 52[or sub-section (1A)] 53[or sub-section (1C)] on or before the seventh day of the month next following the month in which the declaration is furnished to him.]
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