Tds deduction on rent
Querist :
Anonymous
(Querist) 03 September 2011
This query is : Resolved
ONE COMPANY HAS TAKEN A RENTAL PROPERTY FOR A MONTHLY RENT OF RS 50,000/- HAVING 5 OWNERS ALL ARE RELATIVES. RENT IS PAID BY CHEQUE TO EVERY INDIVIDUAL.
MY QUESTION IS HENCE THRESH HOLD LIMIT DOES NOT EXCEED BUT RENT WHICH IS PAID BY THE COMPANY IS RS. 50,000/- IT MEANS RENT PAID BY THE COMPANY EXCEEDS THE THRESH HODLD LIMIT.
TDS WILL BE DEDUCTED OR NOT.
IF THERE IS ANY CIRCULAR PLEASE REFER IT
REGARDS
SUBHASH SHARMA
ADVOCATE
M-9891338895
A V Vishal
(Expert) 03 September 2011
If each individual owner receives more than 1.80 lakhs per annum then TDS is required to be deducted if not there is no requirement, however refer to the ownership document to check whether the property is owned by all the 5 owners since sometimes there are sham transactions in order to evade tax.
prabhakar singh
(Expert) 03 September 2011
Thanks, mr.vishal you always help me improving my tax law knowledge very brilliantly.
M/s. Y-not legal services
(Expert) 03 September 2011
Rightly advised by mr.vishal. Dear author you saying 50 k as rent through cheque, also 5 owners there, even paid to every individuals.. Little confusion here.
R.Ramachandran
(Expert) 03 September 2011
Dear Mr. Tom,
The 50K monthly rent, will be paid by means of cheque. But 5 individual cheques will be given to each party and the total of all the cheques would be Rs. 50K.
Guest
(Expert) 03 September 2011
I endorse the views of Shri A.V. Vishal provided 5 cheques of Rs.10K each are issued to individual property holders' names every month.
Querist :
Anonymous
(Querist) 03 September 2011
I think that “Entire Rent under a lease Deed” will be considered for TDS deduction and TDS should be deducted on this kind of transaction.
Please refere the meaning of Threshold limit :-
Meaning of Threshold Limit :-
“Threshold limit for TDS: - where any rent payable under any lease, sub-lease, tenancy, or any other agreement for the use of any land, building or land appurtenant to a building or machinery or plant or furniture or fitting exceeds Rs. 180000 during the financial year, tax is required to be deducted at source”.
Regards
Subhash Sharma
Advocate
M-9891338895
Guest
(Expert) 03 September 2011
So far taxation is concerned, threshold limit is set for individuals, companies & firms, as entity, not on documents.
girish shringi
(Expert) 04 September 2011
You see if five partners are there then the every person will be getting his share
which will not exceed the limit i.e.one the other is you can get 30%deductions in the I.T. consider the dame and prepare return accordingly.
I think and sure no liability of TDS will come further more if you have take any loan that interest is to be deducted.
