Tds on rental income

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nayudu (Querist)
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26 March 2012 Hello,

I am Nayudu having query on rental income.... I am letting commercial space for 40,000 per month.... The property is on my wife name..... she is assesee and showing income of 2,80,000.... pls let me know details how can i avoid tds cutting by the second party. who is issuing me cheque payment....

thankng u,
ngopal....

CA Prashant Gupta

CA Prashant Gupta (Expert)
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26 March 2012 TDS will be deducted on rent when paid by any person (except individual and HUF if not covered u/s 44AB) and rent is more than 1,80,000/- in a year then TDS will be deducted. So as this rent is 4,80,000/- (40,000 x 12) TDS will be deducted.
But if you can transfer some part of property in your name or any other in your family so that less than 1,80,000/- is for one person and rest to other then for first part No TDS will be deducted.
if this is not possible then TDS will be deducted no exemption.