TDS on Rent

satis_06

Hello everybody

I m woriking as an accountant. my company is paying Rent to Mr.X Rs.32500/- for the house occupied for staff quarter and Tax Deducted at Sources is Rs.5528. But Mr. X does not have a PAN, nor he is interested to apply for it. So kindly any one suggest how it can be treated or how the TDS can be saved.

Thanks
Satish

cwdnandhafin

Dear Satish,

Whether the Landlord is having Pan or Not It is our duty to deduct tds on Rent.

To duduct tds the gross amount should have crossed Rs.120000/- Per annum.

In your case i dont understand why the tds is deducted at 16.995%. because the total rent value itself is Rs.32500*12=390000/- only

Note: for Individuals If the Rent gross amount is less than 10 lacs per annum slab rate applicable is 15.45% only.

Please note that in 2009 Budget there is new rule that if the person is giving wrong PAN or No Pan tds should be deducted at higher rate ( Pls wait for confirmation from Finance ministry ).

Regards,
Sridhar.

pankajadv

Check The detail provisions of TDS on Rent in simple language with practical example. one can understand very easily the provision of tds on rent. TDS on Rent Rates and Provisions ? Tax India

sonam_verma

Very fine article. We are looking for house for lease in chennai