TDS ON RENT with Salary
This query is : Resolved
03 June 2009
Dear Friends,
Our company is paying Rent Rs. 25000/- to one of our employee, in turn he pays the sam to his landlond.
How much should we include in the salary of the employee as Taxable amount to calculate TDS on Salary u/s 192.
We are not deducting any TDS u/s 194I, becasue we are paying to employee & not to the Landlord.
Our company is paying Rent Rs. 25000/- to one of our employee, in turn he pays the sam to his landlond.
How much should we include in the salary of the employee as Taxable amount to calculate TDS on Salary u/s 192.
We are not deducting any TDS u/s 194I, becasue we are paying to employee & not to the Landlord.
03 June 2009
No TDS is deductible u/s 194I as you have rightly mentioned that the company is paying to the employee not to the land lord. It appears you are paying to employee to meet his accommodation requirement. Thus this is a House Rent allowance in the hands of the employee. HRA is taxable the hands of the employee, however the entire amount is not taxable. You should refer section 10(13A) of IT Act to calculate Taxable HRA in the hands of the employee. As per section 10 (13A) HRA is exempt in the hands of the employee minimum of the following -
Actual HRA
40% or 50% of Salary depending upon city of resident.
Excess of rent paid over 10% of salary.
The taxable portion so arrived at should be added to the salary and tax be deducted accordingly.
Actual HRA
40% or 50% of Salary depending upon city of resident.
Excess of rent paid over 10% of salary.
The taxable portion so arrived at should be added to the salary and tax be deducted accordingly.
03 June 2009
I think the payement of Rs. 25000 is not HRA.If wrong please clarify me.
03 June 2009
Hi,
Calculate the HRA taxable in the hands of employee. Then calculate the total estimated income of employee. Calculate the tax payable by employee. Then deduct the estimated tax payable evenly thoughout the year. Refer the details given by Rajesh Dua for calculating taxable HRA.
Calculate the HRA taxable in the hands of employee. Then calculate the total estimated income of employee. Calculate the tax payable by employee. Then deduct the estimated tax payable evenly thoughout the year. Refer the details given by Rajesh Dua for calculating taxable HRA.
03 June 2009
Mr Ratan and Rajesh are correct as the amount paid to employee is in the nature of HRA and not rent, so no TDS u/s 194I. CAlculate HRA taxable as told by Mr Rajesh.
03 June 2009
Thanks to you all.
But actually we are giving separate HRA also to the Employee.
So the above Rs. 25000/- we are not giving as HRA.
But actually we are giving separate HRA also to the Employee.
So the above Rs. 25000/- we are not giving as HRA.
03 June 2009
I was expecting your reply like this only. It is separate amount paid to employee. This will booked under the head salary.
You need to add total 25000 to the income & deduct the tax accordingly.
You May have question why not difference amount? i.e difference between rent paid to employee & rent paid by employee.
This may create the complications to you, as the same is treated as salary. Like we pay salary & deduct tax on total salary not on difference amount (salary less expenses incurred). Hence this entire amount will be taxed as salary.
You need to add total 25000 to the income & deduct the tax accordingly.
You May have question why not difference amount? i.e difference between rent paid to employee & rent paid by employee.
This may create the complications to you, as the same is treated as salary. Like we pay salary & deduct tax on total salary not on difference amount (salary less expenses incurred). Hence this entire amount will be taxed as salary.
04 June 2009
I agree with Mr.Chetan.
This is a perquisite u/s 17(2)(iv) - Obligation of employee discharged by employer.
This is a perquisite u/s 17(2)(iv) - Obligation of employee discharged by employer.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
