Tds on rent
NITIN
(Querist) 22 June 2012
This query is : Resolved
We are into the business of construction and redevelopment of property. As you may be aware that the builder/developers give a monthly payment to flat owners in case of redevelopment so that the flat owners can shift to some other place till the property is redeveloped. We are debiting this monthly amount to compensation. Will this attract TDS on rent provisions or any other head under TDS chapter
Sankaranarayanan
(Expert) 22 June 2012
Yes certainly if the amount paid under the head of ren then if the rent amount beyond the exception limit then the tds will be attracted and detect pay it
C. P. CHUGH
(Expert) 25 June 2012
Chapter XVIIB, requiring to deduct tax on certain payments, comes into picture only when you incurring any expenditure of the nature mentioned in that chapter. Since you are debiting the amount paid towards compensation, not being in the nature of Rent, you are not liable to deduct any tax at source.
