Max. Rent I can Pay without TDS
Vijay
(Querist) 16 March 2010
This query is : Resolved
Hello Sir,
I run a business from my home. (The home is the name of my mother.) My accounts doesn't require auditing as they are below 10 lacs (Service Provider).
I would like to pay rent to my mother as office rent, since I am running my business from home. I don't have a TAN number. So what is the max. rent I can pay to my mother for using her home as office TDS deduction requirement?
Raj Kumar Makkad
(Expert) 16 March 2010
What is age of your mother?
In the given quarry, you can pay rent up to Rs. 1,80,000/- per year if you mother has no other source of income.
Vijay
(Querist) 16 March 2010
Thanks Raj for fast reply. My Mothers age is 62 and see has around 12000 rs. other income (Fixed Deposit Interest). She is currently not required to file returns.
Raj Kumar Makkad
(Expert) 16 March 2010
The you can show an amount of Rs. 14,000/- per month as rent.
A V Vishal
(Expert) 16 March 2010
Vijay
You can pay any sum of amount as rent to your mother as long as the said rent is reasonable. If the rent paid by you is unreasonable the A.O may disallow that portion of amount which seems unreasonable and add back to your income. Further since you don't qualify for Tax Audit under 44AB of the Income Tax Act,1961, the burden of deducting TDS doesnot fall upon you.
Kumar Thadhani
(Expert) 16 March 2010
Your query has been resolved by expert MR.MAKKAD.
A V Vishal
(Expert) 17 March 2010
Can Mr Makkad and Mr Kumar explain the logic behind their explanation.
Vineet
(Expert) 17 March 2010
I agree with Mr Vishal. Being an individual with less than specified turnover, there is no liability on querist to deduct any TDS on rent.
soumitra basu
(Expert) 02 April 2010
I AGREE WITH Mr Makkad and Mr Kumar. THE DEPARTMENT CAN DO WHATEVER THEY LIKE. WE SHOULD NOT AFRAID OF THAT.
