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TDS on Rent

Deepanshu Garg (Student) (273 Points)

27 December 2020

Q1: A businessman doing trading in goods pays Rs. 25,000 per month as rent for shop. Does he have to apply for TAN if he has to deduct TDS on rent ? He has no other use of TAN beside the above purpose.

Q2: If he is not required to apply for TAN than how can he deposit TDS on the rent ?

Thanks & Regards

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6 Replies

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 27 December 2020

TAN is mandatory , 194 I , Limit 20000 / month for F .Y 2020-2021

TDS is not deducted , cannot claim as expense on preparation of financials & attracts a penality of Rs .10000 as per Income Tax Act!

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ayusmita (Tax consultant) (5885 Points)
Replied 27 December 2020

TAN is mandatory for deducted of TDS
and if he unable to cut tds then we will penalties as per income tax act

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Smit Shah (524 Points)
Replied 27 December 2020

If he is not liable to Tax Audit u/s 44ab then he is not liable to deduct TDS as limit is 50000 p.m else he is liable.

2 Like

Deepanshu Garg (Student) (273 Points)
Replied 27 December 2020

He is liable for Tax audit.
So, just for deducting TDS on rent he has to apply for TAN ?
Can he deposit TDS without TAN ?

Jinesh Pamecha (38 Points)
Replied 27 December 2020

No he cannot deposit tds without TAN. It is mandatory

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sudip sharma (article) (734 Points)
Replied 27 December 2020

If the business is sole proprietory then check turnover exceed 100 lacs if yes then tds and tan otherwise. if an assessee is other than individual then tds at this situation and tan is pre requisite.

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