Property related TDS queries

P Gupta (practice) (75 Points)

27 February 2008  

Can you please answer following property related TDS queries:-


 


1) What is the percentage of TDS on house rent? Which of following does it depend on:-
* Total rent amount in current financial year
* Yearly rent amount (even if rent year is divided in more than 1 year)
* Total amount as per lease (for example, monthly rent multiplied by 11 months, if lease is for 11 months)
* Standard %age (for example, 10%, 20%, 30%)


 


2) Is TDS on rent same as TDS on any other income?


 


3) If house is leased to a company, it is necessary for company to deduct TDS? Should owner align with company disclosing his income in the financial year so as to fix the right TDS %age or TDS %age is always standard?


 


4) Is it possible to avoid TDS at rent if rent cheques are issued in the names of a number of different people (husband, wife, parents, ...), probably by including a clause in the lease that cheques will be issued in names of different people? Is rent amount considered as income of different people in this case or rent is still considered as income of owner?


 



Thanks in advance.