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Tds on rent

Dhanesh B.Lande (Article Assitant) (64 Points)

25 December 2012

On filling Income Tax ret

Is Rent agrrement is Comulsory and Tds on rent is not deducted.

Diductor & Diductee are individual & payment mode is cash.

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7 Replies

CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 25 December 2012

Under section 194 I, Rs. 180000 is the threshold limit...applicable rate is 10%.....yes rent agreement is essential as amount depends upon settled value as per rent agreement.

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Karan Teli (Life Is just an Illusion...!!) (4573 Points)
Replied 25 December 2012

Practically rental agreement is missing in 99% cases.

what u may do is that u can file the return but when there is a case and u r called on to furnish the details at that time u can make and show it.

Basically if the rental value is in lakhs then only aggrement is demaded...

Durga Prasad (Trainee) (392 Points)
Replied 25 December 2012

Rent agreement is only for documentation, but you can file I.T.Return.

If rent doesn't cross Rs. 1,80,000/- then no need to deduct TDS.

Ravishankar K (Accountant) (461 Points)
Replied 25 December 2012

the rental agreement which we have with our owner of premises is rs.200000/- per month and in agreement there is no mention of service tax, also in agreement it is accepted that automatically everymonth the rent will be paid before 7th. Hence every month without any bill / demand from owner we automatically pay rs.200000/- as rent and deducct full TDS 10% on 200000/- , now if the owner of premises does not give stax in invoice or if in agreement there is no mention of stax that is headache of owner or us?

CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 25 December 2012

@ ravishankar the landlord should probably give a sort of debit note

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kavitha (studying final) (830 Points)
Replied 26 December 2012

if u r claming service tax on rent in ur accounts, then problem to both of u

otherwise its completeley owners prblm

Ravishankar K (Accountant) (461 Points)
Replied 26 December 2012

we are not availing any cenvat credit and niether showing stax in our accounts for rent,,, we never do seperate accounting for stax, even if we receive invoice for taxable service with stax on it we book whole amt in exp head only incl tax.