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Tds

Nikhil Gupta (Article Assistant) (28 Points)

04 April 2015

hello everyone, i have a quarry related to TDS i.e. A bank made a payment of ?29,288 p.m. as a rent of banking premises to a landlord who is super senior citizen and whose gross total income is below ?5,00,000 and bank does not deduct TDS for the said reason that he super senior citizen and GTI is not exceeding up ?5,00,000. is it correct...??

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5 Replies

Vivek Venkataram (Just cleared CS(441/800) now C.A Final Attempt in May 2015) (772 Points)
Replied 04 April 2015

If he has filed the 15H i think the bank can pay without deducting tds as his total income well below 5 lakhs.

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Nikhil Gupta (Article Assistant) (28 Points)
Replied 04 April 2015

Form 15 H is used for Not deducting TDS on interest on deposit... & for this purpose form 13 for no deduction or lower deduction of tds.... my question is whether this practice is correct or not..???

CA Raj Doshi (Practising CA) (8903 Points)
Replied 04 April 2015

If form of lower/no deduction of tds is given by landlord to tenant with approval of the prescribed income tax officer then it is fine if tds is not deducted. However for this , it is to be proved that total income would not exceed 5 Lacs in any case.

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 04 April 2015

Dear Nikhil

As per section 194I of income tax act 1961, a person (other than Individual,HUF subject to condition section 44AB) require to deduct TDS on payment made to Landlord Except..

1. Total Rent payment is not exceed INR 1,80,000.

2. Deductee provides a lower/Non deduction Certificate.

In your case total amount paid to landlord is more than INR 180000. And bank can take the ground for non deduction of TDS only when "Landlord provides Non deduction/Lower Deduction Certificate" otherwise bank will have to pay Interest on Non deduction and late deduction of TDS.