Tds on Rent

This query is : Resolved

vinod kumar pal (Querist)
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09 March 2017 Dear sir i am salaried person my annual income 720000. i am show in my company that i am paid rent to my mother of Rs 250000 Annually f.y 16-17. So can i liable to deduct tds on rent paid please solve my query thanks

CA Gopal Somani

CA Gopal Somani (Expert)
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10 March 2017 In order to widen the scope of tax deduction at source (TDS), A new section 194IN has been inserted to provide that Individuals or a HUF (other than those covered under 44AB of the Act), responsible for paying to a resident any income by way of rent exceeding Rs 50,000 for a month or part of month during the previous year, shall deduct an amount equal to 5% of such income as income-tax thereon.

Since you are paying rent less than 50000 PM so no TDS is required. But for claiming the HRA exemption you may need to provide PAN number of your mother as yearly rent is more than 100000.