Tds - 194i - death of landlord / legal heir not identifiable

Naveen Kumar (Chartered Accountant) (60 Points)

19 April 2016  

X Ltd (Company) has taken a premise on lease. The owner of the premise Shri .Chaudhri passed away on 23.03.2014.

 

The Company has stopped payment of rent from April 2014 onwards, as it was not provided with the succession documents from the legal heirs.

 

Two Grandsons of Late Chaudhri has provided a copy of WILL dated July 15, 1998 of Late Chaudhri, wherein it is mentioned that the property has been bequeathed in favour of his two grandsons. As informed the application for probate of WILL is still pending before the Honble Court.

 

No rent has been paid for this flat since April 2014 and no provision for this amount has been made in books of accounts.

 

On 10.02.2016  the company has received a notice from NDMC regarding attachment of rent under the provisions of NDMC Act, 1994 since the owner has failed to settle the property tax dispute with NDMC. Copy of the said rent attachment order is enclosed. The Company is required to deposit the rent with NDMC as per attachment order from next month within 7 days from the date of the rent having become due.

 

The Company asked the legal heirs that due to compulsions with respect to compliance of TDS, it is not in the position to pay the rent to NDMC. To comply with the attachment order, the legal heirs has deposited Rs. 100,000 with NDMC and the Company informed the same to NDMC.

 

The legal heirs now has now shown their inability to deposit the amount to NDMC.

 

Please let us know that in what manner we can to comply with the said attachment order in absence of identifiable owner of the property considering the TDS provisions of Income Tax Act.

 

Can we deduct TDS in the name of deceased landlord and comply to the attachment order by paying net rental amount to NDMC