TDS on Rent

This query is : Resolved

CA. Shikha (Querist)
Follow

14 July 2010 What is the maximum amount that can be shown as rent paid for claiming HRA exemption without having the liability to deduct TDS on the amount paid ?
Is it 1,80,000 or 1,20,000

Gaurav Barmera

Gaurav Barmera (Expert)
Follow

14 July 2010 Exemption limit for TDS on rent is 1.8 lakh annually from 1.4.10. earlier it was 1.2 lakh.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

14 July 2010 THRESHOLD LIMIT OF RS. 1.80 LACS IS FROM 1ST JULY 2010, NOT FROM 1ST APRIL 2010.

Upgrade to CAclubindia Pro. Subscribe Now!

Krishan

Krishan (Expert)
Follow

14 July 2010 Shikha, i think u r mixing both the limits...

An individual is not required to deduct TDS on rent paid unless he / she comes under the purview of section 44AB...

and if that is the case then the TDS is to be deducted @ 10% (if exceeding 180000, after 1.07.2010).

In normal case for getting HRA exempted under head Salary... Usually, HRA + 10% of HRA makes the HRA fully exempted..

Hope, i m clear abt ur query...