TDS on Rent

This query is : Resolved

Piyush Singhal (Querist)
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27 July 2010 If a person whose is liable for audit under section 44AB of Income Tax Act pays rent for residential house Rs.240000/- per annum. Is he liable to deduct tax at source?

srinath

srinath (Expert)
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27 July 2010 if he was liable for tax audit in the PY den he is liable for TDS @ 10%

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 July 2010 Residential house will not cover under TDS unless the same rent has claimed under Business

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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27 July 2010 Rent paid for residential house is not a business expenditure. TDS is not applicable on expenses which are personal in nature.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 July 2010 The section 194I has used the word "building" meaning therby that there is no distinction between residetial and commercial building. Therefore,in the case of rent on residential buildings as well, the tenant has to deduction tax under section 194I subject to the satisfaction of other conditions mentioned therein.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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28 July 2010 If rent paid is personal in nature & not claimed as a business expenditure, there is no liability to deduct tax. All TDS provisions including Sec 194I doesnot apply to personal expenses.