TDS on Rent

The Question of deducting TDS arises only when the amt. exceeds Rs. 1,20,000/- in a particular F.Y.

So the second option is to be followed acc. to Sec. 194I. But Practically, since we know that the rent amt. will exceed the above mentioned ceiling in a particular F.Y., then we start deducting the TDS from the very beginning when the rent starts becoming due or paid whichever is earlier. So both the methods are correct.

But no amt. of intt is due if follow the second method.

Thanks

Atul, the SEction 194 I clearly says, TDS need not be deducted if the amount payable or likely to be payable does not exceed Rs.1,20,000/-.

Meaning, clearly if there a chance that Rent might exceed Rs.1,20,000 in any financial year, then TDS needs to be deducted.

Hence, Rs.1500/- p.m

Shiva

FROM APRIL 09 TO SEP 09 TDS LIABILITY WOULD BE MONTHLY RS. 1545/- AND FROM OCT 09 TO FEB 2010 TDS LIABILITY WOULD BE MONTHLY RS. 1500/-