Lower exemption certificate rate higher than acutal tds rate

This query is : Resolved

geeta (Querist)
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03 November 2009 We have received a lower exemption certificate from our landlord for 13.03%.

But as per sec 194I of Income Tax Act, tds rate for AY 2010-11 is 10% for rent on building.

Will it be a violation, if rent is paid after deducting 10% tds instead of higher rate of 13.03% as per the certificate.

In support of the answer kindly provide related notification,circular or case law that will substantiate the answer.

CA Balram Sharma

CA Balram Sharma (Expert)
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03 November 2009 ANY CERTIFICATE CANN'T OVERRIDE THE PROVISION OF ACT,
IF ANY THING DONE IN ACCORDANCE WITH THE ACT THAT WILL NOT BE VOILATED,

AS THE SECTION 194I PROVIDE THE RATE 10% HENCE THERE IS NO VIOLATION .

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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03 November 2009 The certificate was for concessional rate as the stipulated tds rate was 15% for Individual/Huf and 20 % for other recipient till 30.09.09.

Since TDS rate became 10% wef 01.10.09 & u r having the old certificate obtained by landlord it would be better for the landord to either apply for revision of certificate or to surrender the certifiacte.

Till then deduct tds and deposit at 10% rate as expert Sharma said.

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