Rent on let out property calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2013 If the property has been alloted to a Corporate Giant and the rent amount received from them on monthly basis is post TDS deduction. The rental income is in the hands of employee. While the employee declares his income to his employer for appropriate tax deduction, what amount should he consider while doing the Loss on HP calculation?? If he considers the Gross Amount, then there would be double tax deduction.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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28 January 2013 As the property is let out to Employer company, the employee has to give declaration in Form 12C (Rule 26B)in respect of computation of income from HP giving Gross rent receivable, total interest and Principal payable for the financial year, repairs and municipal taxes paid etc.,

The company is bound to comply TDS on Salary and TDS on Rent provisions separately.

There is no question of double deduction of tax if the employer taken the salary and HP income together and considered the TDS deducted in HP income while calculating total tax liability of employee.

Generally, the employer has to compute the balance tax liability after taking credit of TDS on Rent and tax on salary already deducted in such cases.