TDS on RENT in case of CO Owners

[VAMSI KRISHNA]

Dear All,

Q.No- 1,

'A' and 'B' are Co- owners Of a Property Which Is Given On Rent To 'C' . Rent Is 28000 (14000 To 'A' And 14000 To 'B') Per Month. For this Transaction whether TDS Provisions Will Attract Or Not ?????

Q.No- 2,

'A' Owned a property Which Is Given On Rent To 'C'. As Per Agreed Terms Rent Per Month is 28000.

'B' is relative Of 'A'. In Rental Agreement With 'C' , 'A' Mentioned As Property is owned By 'A' and 'B' (Like Co-owners But property Is In Name of 'A' only). For this Transaction whether TDS Provisions Will Attract Or Not ?????

Q.No-3,

In Both Cases How 'C' Will Ensure Whether Payees Are Co-owners Or Not????????

Q.No-4,

As Per Provisions Of TDS If They Are Co-Owners TDS Limits Applicable separately.

So Co owners Both Are Eligible To Claim Income. If 'C' Paid Accumulated Amount (I.e In (Q.NO-1) 28000) Paid Only To 'A'. And 'A' further Given 14000 to 'B'. Whether TDS will be deductible When payment 28000 by 'C' to 'A' ??????

Thanks.

[Ganeshan Kalyani]

Sir, here is the answer to your point wise query:

1. No, TDS is not applicable.

2. The arrangement is incorrect in the eyes of law.

3. The property agreement would establish the fact.

4. No, TDS is not deductible.

Thanks.

AI Summary

TDS on rent from co-owners: genuine co-ownership removes tenant's TDS obligation when rent shares are allocated appropriately. If two persons are genuine co-owners of rented property, the tenant need not deduct TDS on rent and TDS provisions do not apply; if a sole legal owner falsely records another as co-owner, that arrangement is incorrect and the tenancy agreement is the evidence a tenant should rely on. Payment of the whole rent to one payee who later remits the other co-owner's share does not, in the advisor's view, attract TDS by the tenant.