Fees amount transfer procedure landlord to tenant

[Sundaraiah kollipara]

Sir,

A doctor (landlord) own private hospital rent to another doctor (tenant)

If a tenant (doctor) health services provided to patient treatment after fees amount rs:40 lacs fees amount from healthcare Care trust sec 19Jjb credited by landlord (doctor) bank account and fees amount tds deducted show in landlord (doctor) pan ais show in income tax portal .but health care trust pan number change not accepted 

Question:

Fees amount transfer procedure landlord to tenant for it purpose 

2.fees amount pay to tenant (doctor) tds deducted provision applicable for it purpose 

[Ryan Vaz]

The professional fees of Rs. 40 lakhs are taxable in the hands of the tenant doctor, as they are the actual earner of the income. The landlord doctor should transfer the net amount received to the tenant doctor and ensure their Income Tax Return (ITR) does not reflect this as their income. The tenant doctor can claim the TDS credit, even though it appears in the landlord's PAN, by following the procedure outlined in Rule 37BA(2) of the Income Tax Rules, 1962, provided the deductor (healthcare trust) cannot correct their TDS return.

AI Summary

Professional fees taxation follows the actual earner, with TDS credit claimable under Rule 37BA despite PAN mismatch. Professional fees received from a healthcare trust for services rendered by a tenant doctor are taxable in the hands of the tenant doctor as the actual earner of the income, even if credited to the landlord doctor's bank account and shown against the landlord's PAN. The landlord doctor should pass on the net amount to the tenant doctor, and the landlord's return should not reflect it as his income. The tenant doctor may claim TDS credit under Rule 37BA(2) where the deductor cannot revise the TDS return or PAN details.