Tds on rent in case of two payees

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Sumit

None

36 Points Posted on 19 February 2014

Hey

Can any one figure me out of this problem !

An individual has taken a shop on rent for commercial purpose.

He is paying monthly rental of Rs 29000 for that shop. Annual payment comes out to be Rs 348000. This exceeds the capped limit of Rs 180000 per annum. So the individual is liable to deduct TDS.

But there are two owners/payees of that shop. So the individual/payer is paying rent for that shop Rs 14500 to each of the payee/owner. So each payee having his annual income as Rs 174000 from rent which does not cross the capped limit of Rs 180000. But in aggregate total rental income of the shop/ total rental expense for the payer is Rs 348000 which exceed the capped limit of Rs 180000.

So my question is whether the individual/payer is liable to deduct TDS on amount of rent paying to both of these payees or not ?? Whether the capped limit is allowable to each of the payee/owner separately. ?

Replies (3)

Mihir

Wealth Manager

5358 Points Posted on 19 February 2014

No, since there are two owners of the premises, and both are receiving separate rental income, TDS deduction from rental income shall arise only if the payment to each owner exceeds Rs. 180,000/-. Here, the income is Rs. 174,000/- and therefore TDS deduction is not required.

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