CA Akshay Somani (CA) (79 Points)
09 August 2019Would TDS u/s 194IB will be attracted if an Salaried individual is paying rent of Rs. 30000 each to two co-owner of the property.
The requirement is to see the total payment of Rs.50000 for deducting TDS or according to payment to Co-owner. Please clarify my doubt.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166636 Points)
Replied 09 August 2019
As per the wordings of the section, it is required to be deducted when rent per month paid to a resident, exceeds 50000/- And no clarification issued over the issue by CBDT till date.
A recent case law u/s. 194-I support the issue as non deduction of TDS when rent paid to individual co-owner did not exceed Rs. 1,80,000/- PM.
But to be on safer side, it has remained practice by professionals to deduct TDS on shared rent when the aggregate rent exceed 50K PM for any single property/agreement.
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