Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

TDS on Rent

13 July 2019

I am paying monthly rent of Rs. 18,000/- Annually it's Come Rs 1,92,000 What is TDS effect in this transaction and didn't have TAN no.

Reply
Follow
Share

7 Replies

Murugan Shanmugam (109 Points)
Replied 13 July 2019

since the aggregate amount exceeding 180000.
u need to deduct TDS @ 10%.
u have to apply tan no.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Robin Ghosh (74 Points)
Replied 13 July 2019

IF you do not have TAN no then you must obtain it from Website. If you cannot do that then this expenditure fully disallowed. So you must get it and deduct @ 10% from 18000 in each every month and deposit it to govt in every 7th of month

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 13 July 2019

no TDS required as the threshold is 240000 for rent paid.

Mujeeb rahuman (Audit assistant) (101 Points)
Replied 13 July 2019

if payment of rend 15000 and above ,u must deduct tax 10 % on rent in 194i , 194ib

Suresh Thiyagarajan (Student) (3986 Points)
Replied 14 July 2019

1. Tax Deductions and Collection Account Number (TAN) is mandatory for a person who is required to deduct or collect tax at source. As per sec 203A, every person who is responsible for deductions of TDS or collection of TCS needs to quote his TAN at the time of filing the return. Failure will result in a penalty of Rs. 10,000 as per sec 272BB.
2. According to sec 194-I, TDS need to be deducted on payment of rent if the amount of rent exceeds Rs. 2,40,000 per year.
3. In your case since the aggregate rent expenses come to only Rs. 192,000 per year which is less than the threshold limit specified u/s 194-I, there is no need for deduction of TDS.
Please correct me if the above solution has an alternative view.

Upgrade to CAclubindia Pro. Subscribe Now!

abhishek tiwari (CA) (79 Points)
Replied 14 July 2019

You are not required to deduct any Tds because Threshold limit is 240,000 annual And you paid less than it So there is no requirement to obtain any tan number Contact : 7000879216 Whatsapp group 5 link https://chat.whatsapp.com/CpLYTn8P3lp6C72XFrDg28