04 February 2009
Mr. A (a resident individual) is a salaried employee having annual salary around Rs. 6 lac. He stays in a rented house in delhi and pays the landlord Rs. 13000 per month. In his salary component he claims HRA for the same.
The landlord stays in Canada since few year and comes to India for 10-15 days in a year. This makes him a non resident. Mr. A use to pay the rent in bank account of the landlord in Delhi itself.
Query #1 - Whether Mr. A is required to get TAN no. and deduct TDS for payment of rent under section 195 of the IT Act.
Query # 2- Will it make any difference if Mr. A is a labour working with a contracter and having fixed salary of Rs. 2000 per month (Rs. 24000 per annum). Funny but still a question.