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TDS on rent

MITHRA (Professional) (35 Points)

13 October 2008

i have let out a commercial property on rent. and i am paying the property tax for it. when the tenant pays me the rent is it correct that TDS can be deducted after reducing the property tax paid on the rent. ie, TDS= (Rent -Property TAx)*20.6% is this the correct way. please help me. its urgent.

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5 Replies

CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 13 October 2008

No, the tenant is supposed to deduct the tax at source on the amount of gross rent.

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Arun Gupta (Chartered Accountant ) (43 Points)
Replied 13 October 2008

wrong,tds should be deducted on gross rent

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 13 October 2008

TDS should be deducted on the gross rent and not the net rent.

Rohit Khare (student) (111 Points)
Replied 14 October 2008

According to Sec.194I, payer is liable to deduct tax on the amount paid or credited to the payee. Hence there is no concern as to whether payee is paying property tax or not. Thus TDS should be deducted on gross amount and not no the net amount.

MITHRA (Professional) (35 Points)
Replied 14 October 2008

if the tenant is paying rent on building let out for commercial purposes with out deducting TDS, is the land lord liable to pay TDS on the payment received on account of rent. if so, when? or whether this is to be done at the end of the financial year at the time of filing returns?