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TDS on Rent

Atul h Kaulwar (Article) (91 Points)

23 December 2009

the period of rent agreement (for Office Building) is from april 2009 to feb 2010

the monthly rent is Rs 15,000/-

total rent paid during the F Y comes to Rs 165,000/-

Assume TDS rate @ 10%

thus the total TDS for F Y 2009 -10 is Rs. 16,500/-

my question is that wheter the liability for the payment of TDS is Rs. 1500 mothly from april 2009 to feb 2010, or TDS payble Rs. 12,000/- in the month of nov 09 (i.e. the month in which total rent paid exceed Rs 120,000/-) and therafter Rs. 1,500 monthly for dec 2009, jan 2010 and feb 2010.

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3 Replies

Shikha Bajaj (CA ) (433 Points)
Replied 23 December 2009

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