TDS u/s 194IC

[hubert fernandes]

In case of redevelopment agreements with Registered Co-operative housing society if Builders enters in an specified agreement as defined u/s 45(5A) of income tax act with the society and such specified agreement during the construction stage provides for an alternate accommodation to the existing member, whether the rent payable/paid to the Society as part of alternate accommodation will be subjected to TDS u/s 194IC or under 194I (TDS on rent)

please advise

[CASusheel Gupta]

In my view, amount being paid towards rent is part of consideration and rent is only a method of quantification. TDS on rent should be deducted by tenant and not by you.

CA Susheel Gupta

9811004443

AI Summary

Clarification on TDS Applicability: Rent for Alternate Housing in Redevelopment Agreements Falls Under Section 194IC, Not Section 194I. A query was raised regarding the applicability of Tax Deducted at Source (TDS) under Section 194IC in the context of redevelopment agreements between builders and registered co-operative housing societies. Specifically, it questioned whether rent paid to the society for alternate accommodation during construction should be subjected to TDS under Section 194IC or Section 194I. The response clarified that the rent is part of the consideration and should be treated as such, with TDS on rent to be deducted by the tenant, not the society.