TDS ON RENT

No TDS is required to be deducted on electricity & water charges reimbursements to the owner, since it is not his income. He is collecting the same on behalf of the service authorities and paying them back

Dear Deepak,

Agree with Rachit,

Inference can be drawn from Circular No. 718 -

If the municipal taxes, ground rent, etc., are borne by the tenant, no tax will be deducted on such sum.

Dear Deepak

Tax is required to be deducted at source only on  those payments which forms part of the income of the other person and this is a universal rule for all the TDS provisions. Hence no TDS on EC and WB as it does not form part of his income.

Hope it is clear now.

dear deepak

tax will not be deducted on payment of water charge or electricity whether it forms part of rent or not.rent includes advance rent,ware housing charges,non refundable deposits bcoz these items are to be included in the income of deductee.but water charges and elec. etc does not form part of the income of deductee and agree with friend rachit completly

AGREE WITH AMIR BHAI

If refundable security was paid to owner is attracting TDS

Hi Deepak

                   we have to deduct tax on only rent. we should not deduct TDS on water charges, electricity charges.

On refundable security deposit to land lord , no need to deduct TDS