Hi friends ,
Circular No.715 dated 8-8-1995 Question 21 is as follows
Whether the limit of Rs. 1,80,000 per annum would apply separately for each co-owner of a property ? Answer : under section 194-I, the tax is deductible from payment by way of rent, if such payment of the payee during the year is likely to be Rs. 1,80,000 or more. If there are a number of payees, each having definite and ascertainable share in the property, the limit of Rs. 1,80,000 will apply to each of the payee/co-owner separately. The payers and payees are, however, advised not to enter into sham agreements to avoid TDS provisions.
My question is,
Rent is yearly 4,80,000
owners of the property are 5 members who has definite share in the property.so as per above circular we need not deduct TDS as rent per individual is less than 1,80,000/-p.a
But if rent cheque is issuing in the name of different person apart from owners for operational convinience of the owners for Rs.4,80,000/12.
in this case do we need to deduct TDS or not.
CAclubindia
