y.shiva (advocate) 30 May 2008

Lease Rent

Hi, gudmonring to all members, i just have one querry, Our Company has took one premises on lease and paying the rents to A of Rs.20,000/- by deducting the tax on it, now A wants our company to pay the rents in equally to A and his son B of Rs.10000 each to them, and they are showing one will deed created by the father of A in their favour against the scheduled lease property, if we pay like such the lease amount will not attract tax deduction from our company, whethe we can make an agreement like such, can we pay the rents like such, or what will happen at later stage from the income tax dept, please advice me accordingly.

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5 Replies

Guest (n/a) 30 May 2008

You have not mentioned with whom you have entered into the rent agreement. If the property is owned by A and his son based on 'will', agreement should also be entered into with both. In such a case, then the limit for deduction of TDS u/s 194I of Rs.1.20 lakhs per annum will apply to each of the co-owners.

Guest (n/a) 31 May 2008

BUY A PLOT WITH RS500000/- INVESTMENT

Ajay kumar singh (Advocate) 01 June 2008

A WILL has no legal force during the life time of the testator/father.It may be annulled by father at any time.Their approach is just a way to avoid the deduction.Pl continue as before.

Srinivas.B.S.S.T ( Advocate) 15 June 2008

let me repeat your doubt once again, you are in lease agreeement with one A and now A wants to pay the rent equally to A and A's son B, showing the will executed by A's father isnt it? in such a case it must be necessary to know that whether A's father is alive or deceased. Beacuse as our friend Ajay said will has no legal force during the life time of testator. If assume that A's father is dead then you have to enter a lease agreement with both A and B as they are the joint owners of the property as per will of the A' father.