Viswamohan (Micro Finance) (44 Points)
04 March 2009If an Individual is paying rent to an individual Rs.15000/- per month. Eg. Mr.X is paying rent to Mr.Y. Is TDS to be made.If so , what is the percentage and how can we file the IT returns and rent is the only source of income to Mr.Y. Kindly suggest.
Regards
Viswa Mohan
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 04 March 2009
Dear Friend
As TDS on rent is deducted u/s 194I but it doesn't applies on invidual . So in above case no TDS .
True...Mr.Saurabh is correct.
No TDS unless and until the person paying rent is liable for tax audit under section 44AB.
IF TDS is deductible rate will be 15%(plus EC). Mr. Y will file the ITR showing income under the Head House Property and can claim TDS deducted in his return from tax payable.
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