TDS on Rent

[d.v. gupta]

we are a pvt ltd co. we are paying rent to a director of company for two immovable property used by company as under: rent for first property rs. 6000 rent for second property Rs. 5000 thus we are paying rs 11000 in toal. whether the company should deduct tds or not out of rent paid for two property.

AI Summary

Company Must Deduct TDS on Rent Exceeding Rs. 1,20,000 Annually Under Section 194-I for Director's Properties A private limited company inquires about the necessity of deducting Tax Deducted at Source (TDS) on rent payments totaling Rs. 11,000 per month to a director for two properties. The first response suggests that since the annual payment exceeds Rs. 1,20,000, TDS should be deducted according to Section 194-I of the Income Tax Act. It also discusses scenarios where TDS might not be required, such as if the rent does not exceed Rs. 1,20,000 in the initial year or includes certain reimbursements. The second response concurs that TDS is required due to the amount exceeding the threshold.