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Tds on rent for individual

Adi (Others) (59 Points)

27 February 2015

hi is TDS applicable if property has been rented to individuals? is so what is the rate and limit?

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4 Replies

Raphael (Chartered Accountant) (214 Points)
Replied 27 February 2015

An individual is liable to deduct TDS on rent only if he was liable to tax audit in the previous year. Most of the individuals are not covered as per this. Also, if you are leasing the property to an individual for personal purpose, TDS provisions will not apply.

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Adi (Others) (59 Points)
Replied 27 February 2015

Ok thanks. Property is being leased for commercial use to an individual. Is tds still applicable? What about Service Tax

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 27 February 2015

Dear Adi

1. If your gross services is more than 100,00,00 than you will to charge service tax @ 12.36%

2. If gross Rent charge from that individual is more than 1,80,000 and you are liable for Tax audit under section 44AB than you will have to deduct TDS @ 10% of the Rent amount (excluding Service tax.)

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 27 February 2015

Originally posted by : Adi
	Ok thanks. Property is being leased for commercial use to an individual. Is tds still applicable? What about Service Tax

Hi Adi,

If property is let out to Individual, if tax audit u/s 44AB done in last year on him, then he is liable to deduct the TDS u/s 194I if payment is above 180000 in a FY. otherwise not.

no matter of it is for commercial use.

TDS will be deducted by exclusion of service tax amount.

if service provider's taxable service is above than 9 lac, then liability to register for service tax and in no liability of charge to service tax upto 10 lac and after that laibility is arised. In next year, if last year turnover above than 10 lac, then charge the service tax from first date of financial year. but if in last year turnover was not crossing the 10 lac limit, then not charge service tax upto 10 lac and after 10 lac, charge service tax.

Here taxable turnover amount is rent charged amount.