Tds on rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2013 Hi..
Presently we are paying rent to four co-owner of property @6000/-pm to each person. Hence no tds liability will be genated. But if we transfer whole amount to only one person whether tds liability will generate.

We have made rent agreement with four co-owners & no specific wording is written regarding whole payment of rent only one person.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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09 January 2013 The limit of TDS which is exempt is 1,80,000
so if you are giving rent to four person separately then no TDS as one got 6000 x 12 72000 only but if you will provide combine then it will cross limit and will be taxable

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2013 Dear MR. Gupta,

My point is this we have rent agreement with four person but i am transfering whole amount of rent only one person. So still they all are eligible for 180000/- limit.

My obligation to pay rent saperately to all four person. But for my poit i transfer whole rent only to one person account. so they all are still eligible for TDS exemption limit of RS180000/- each

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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09 January 2013 if you are giving cheque to only one person then income tax deptt can raise notice.
it shows that for saving tax you are doing this.
So this method is not avisable
you can fight with deptt if you are not paying TDS but as per my thinking you will loose. because 1 property is same 2 you are paying rent to one.

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 Thanks.....