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TDS DEDUCTION.

11 June 2021

hi, we pay rents and deduct tds, but if we acquire more space from the same landlords but the location is different and the rent amount does not cross 2.40/ annually we need to deduct tds or not.

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5 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 11 June 2021

Assuming that both the locations are for the same organization, aggregate payment to a person under the PAN is relevant for the purpose of TDS. Since the lessor is the same person, TDS applicable on crossing the threshold limit of Rs.2.4 lacs considering aggregate payments during the year.

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SUMIT BADYAL (709 Points)
Replied 11 June 2021

The landlord is the same but the rent amount and new address of the location are different and the rent amount doesn't cross the limit of tds, in this case, tds deduction is mandatory or not.

CMA Poornima Madhava (CMA) (13112 Points)
Replied 11 June 2021

I think I've already answered your query. Even if the rent is for a different location, since you are paying to the same person (same PAN), you need to add the total payments to check the threshold limit. If total payments (existing + new) exceed Rs.2.4 lacs, TDS applicable.

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