SHASHANK SHEKHAR DASH (Banker) 09 January 2012

Tds on rent

I work in a Public Sector Bank.Now I am staying on lease basis in a flat in Delhi for my residential accomodation with a monthly rent of Rs 22000/-. Out of this my Bank is paying Rs 11000/- and I am paying the balance of Rs 11000/-. In such a situation please clarify on the following points:-

1. Should my Bank deduct any TDS on the monthly rent even if in Bank's Books total annual rent paid comes to Rs 132000/- which is less than the stipulated ceiling of Rs 180000/- u/s 194I of IT act.

2. Out of monthly rent of Rs 22000/-, I am contributing Rs 11000/-. As per my understanding, an individual, does not fall under section 44AB of IT act, so not liable to deduct TDS. In such situation can my contribution be added up to Bank's contribution for deciding the TDS on rent ( u/s 194I of IT act)

Please clarify.

Shashank

8826895137

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4 Replies

abhishek nagar (student) 11 January 2012

Pls, clear these points-

1. Between whom the lease deed was made?

2. Is your bank paying the rent directly to the landlord or you receive it in first place and then pay off after including your part to that payment?

SHASHANK SHEKHAR DASH (Banker) 12 January 2012

1. It is an oral lease is between Babk and Lanlord.

2. Every month a rent is paid by draft in favour of landlord by debiting Rs 11000/- to Bank's revenue and Rs 11000/- from my salary.

C. P. CHUGH (Practicing Lawyer) 12 January 2012

Since agreement of lease between Bank and Landlord for a sum exceeding Rs. 1,80,000/- a year, the Bank is liable for deduction and deposit of tax as souce. it does not matter the Bank recovers part of rent from its employee under terms of employment.