Respected sir,
our client m/s XY has paid rent amounting in aggt. rs. 230000 but the payments has been made to 3 different landlords for different premises kindly advise me how should tds be deducted in following case:
2000*12= 24000 in a year to landlord A
9000*12= 108000 in a year to landlord B
8000*12= 96000 in a year to landlord C
pls tell me when all of above were paid in months regularly by m/s XY and they have not deducted any TDS how do i rectify
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whether tds deductible ?
Replies (11)
As per section 194I the payer is suppose to deduct TDS from rent paid to his/her landlord if the amount paid to him or credited to any account exceeds Rs. 1,20,000/-. In this case as none of the Landlord is receiving rent in excess of the amount specified in the section no TDS has to be deducted. The interpretation of the section states that deduction of TDS depends on the payee and not the payer.
No liability to deduct tax.
Dear All,
Pls tell me what should be the rate of TDS where the pmnt is made by proprietor Raj in the following cases u/s 194C
1. paymnt made to contractor X Rs. 845000
2. pamnt made to contractor Y Rs. 1350000
my question is "whether rate of 2.66% applies to both of them or only to Y and 2.06% to X ??"
i am agreed with tinku
Hi Tejas,
Under section 194C an individual is required to deduct tax only if he is covered u/s 44AB. In the given case if Mr. Raj is covered u/s 44AB than TDS rate has to be determined for each contractor separately. In case of X as the total payments is less than Rs. 10 Lakh so TDS rate will be 2.06% and in case of Y as the total payment is more than Rs. 10 Lakh hence the rate of TDS will be 2.266% not 2.66%
as per section 194-I TDS in respect of rent is deducted in excess of Rs.120000 in a year .If there is a no. of payee then this limit is applly seperately .
Therefore in this case no TDS is Deducted.
no tds has to be deducted as limit of Rs 120000 is for per person
It depends upon agreement made in between them for payment of rent. Please note that,merely payment made to three different people may attract TDS provision u/s 194 I.
If it was stated in agreement that payment will be made to 3 different people---then no TDS.
there no liability to deduct TDS as the rent amount to each landlord is less than Rs.120000
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