Section 194i

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2013 Dear Sir,

I would like to ask you a question relating to section 194I.

Q) A co. paying rent of Rs. 40000/- per month for a property held between 4 people...
Mr. A, B, C and D

A - 50%
B - 25%
C - 10%
D - 5%

According to the 194I 10% tds on the paid amount but in the above case the total rent is paid to A only....nd the company is deducting the tax on his share only....

Rs.40000/- per month ,out of which Mr.A share is 20000/- (50%)

Actual tds amount should be 4000 but co. is deducting only 2000/-...........

Pls help me with this.

CA. Shashi Kumar Gupta

CA. Shashi Kumar Gupta (Expert)
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06 January 2013 In case of rent, liability to deduct TDS arises only if the amount paid to a person during the financial year exceeds Rs. 1,80,000;

Since in case of A, amount is Rs.2,40,000, therefore TDS is needed to be deducted.
In case of others, no need to deduct TDS because amount paid to each person does not exceed Rs. 1,80,000.