Tds on rent for separate properties of same person

Page no : 2

dhrupal (accountant) (24 Points)
Replied 15 June 2014

Tds to be deducted on both premises.

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Arif Ali (Apt Co Advisory) (1230 Points)
Replied 15 June 2014

Mr Mihir is at wrong, The TDS will be deducted at whole amount paid to single person.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 15 June 2014

i already said that in the very beginning.

Mihir (Wealth Manager) (5293 Points)
Replied 16 June 2014

Rent for property A - Rs. 100,000/- p.m

Rent for property B - Rs. 8,000/- p.m

Naturally, TDS applies to property A. And most of us are saying TDS will apply on both because the deductee is the same. But if rent agreement is cancelled in property A, then we cannot continue to deduct TDS as it is less than Rs. 15,000/- pm. But if rent agreement is cancelled in property B, we will continue to deduct TDS.

Even if the deductee is the same, the agreement is separate and so is the property. Will it not create a confusion that we are considering two properties and their agreements having different rent amount as one only because the deductee is the same? Think about it.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 16 June 2014

@ mihir.... you are correct on your logic but we cannot go beyond the act. the act does not specify that tds has to be considered separately for diff. properties, rather it says tds to be deducted if the amount paid to any person exceeds 180000 p.a. the section does not specify anywhere regarding the no. of properties also, the only thing it says that amt. should be in excess of 180000 and it should be paid to a person. so even if payment is for more than 1 property and where rent agreement is also separate for each property, tds has to be deducted on both property because payment is being made to a single person.