eTaxMentor (employee) (217 Points)
21 March 2013What is the tax deducted at source (TDS) when a residential flat is given by an individual to a company on lease for residential purpose?
How often does the company need to issue TDS certificates to the owner?
Further, can the owner (an individual with salaried income) use this certificate to discount his taxes?
If yes, how?
If there has been loss of income from house and property after taking into consideration the rent, can a document be submitted to the tenant so there is no TDS?
Nazia
(Asst Manager - Finance)
(139 Points)
Replied 21 March 2013
form 13 can be submitted for non-deduction of tax if your rental income does not attract tax
Nazia
(Asst Manager - Finance)
(139 Points)
Replied 21 March 2013
form 16a to be issued before 15th of the succeding month every quarter; for last quarter ending 31st march its 15th May.
Mihir
(Wealth Manager)
(5293 Points)
Replied 22 March 2013
TDS u/s 194I will apply if the rent exceeds R. 180,000/- aggregate in a financial year. TDS returns are filed every quarter and so TDS certificate are issued quarterly.
eTaxMentor
(employee)
(217 Points)
Replied 25 March 2013
| Originally posted by : Mihir | ||
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TDS u/s 194I will apply if the rent exceeds R. 180,000/- aggregate in a financial year. TDS returns are filed every quarter and so TDS certificate are issued quarterly. |
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Good Morningsir
I need a Clear answer to my each and every question please can you give the answer
What is the tax deducted at source (TDS) when a residential flat is given by an individual to a company on lease for residential purpose?
How often does the company need to issue TDS certificates to the owner?
Further, can the owner (an individual with salaried income) use this certificate to discount his taxes?
If yes, how?
If there has been loss of income from house and property after taking into consideration the rent, can a document be submitted to the tenant so there is no TDS?
Mihir
(Wealth Manager)
(5293 Points)
Replied 25 March 2013
Rent is payable monthly on the basis of leave and licence agreement which is normally valid for 11 months. If the rent for the year exceeds Rs. 180,000/- pa or Rs. 15,000 pm, TDS has to be deducted from the payment each month.
Here, an individual is renting out a flat to a company probably for more than Rs. 15,000 pm. The company paying rent to the owner will deduct TDS @ 10%. This 10% will be deducted and deposited by the company to the govt treasury. After a quarter, the company will file TDS return stating the TDS deducted and credited to the owner's name at a given PAN number. The company then issues a TDS certificate stating the amount deducted, deposited and the acknowledgement receipt number of TDS return filed. The owner is required to state this acknowledgement number in his IT returns to avail TDS credit. This is when the owner will get the credit of TDS. This credit of TDS is like an advance tax, which is paid by the company on behalf of the owner. As and when the owner files IT returns, the tax liability will reduce to the extent of this TDS credit.
Company will deduct TDS monthly, and deposit the same the subsequent month. The company then file TDS return and issue TDS certificate to the owner quarterly.
CAclubindia
