Deduction of TDS u/s 194IB in case of joint ownership of a residential property

Hi,

The limit Rs. 50000 is per person however it is not clear that in ca the property is owned by two or more person and the single agreement is made then it will considered as one person or not but if you do separate two agreements then TDS provision will not be applicable.

since single owner will give house to two people and rent is Rs. 30000 per person aggregating rs. 60000 still TDS u/s 194IB shall not be applicable so A.O might considered the limit on the side of payer and not payee.

so in My Opinion.

If you don't want any action in future then it is better to deduct the TDS and pay it.

and if You want to deduct then it shall deduct it now and don't wait for scrutiny.

Liability to deduct TDS is arise in the month of March and Interest @1% will be leviable from month of March to Date of Deduction and 1.5% from date of deduction to Date of Payment and penalty of Rs. 100 leviable per day from 1st May to date on which form 26QC is filed.

Yes, Owner can claim TDS as per Form 16C by filling return and if return is already filed then revising the return.

Hi

1. The rental limit is per individual.

2. Yes, since you have been making payment of 53000 in a month to one of the co-owner landlord.

3. You should deduct now.

4. Interest is 1% per month for late deduction and 1.5% per month for late payment post deduction.

5. Yes, they may claim the refund. If they have filed their returns, they may revise it to claim the refund.

#If the rent was paid equally each month to both the co-owner landlords, there would have been no TDS liability.

Hi,

1. The rental limit of INR 50k is per owner.

2. Yes, you are liable to deduct TDS as you have paid 53k per month to each owner. If you pay 26.5 per month to two owners, then TDS can be avoided.

3. You will have to pay interest @1% for late payment of TDS plus you will have to pay penalty of INR 200 per day for late filing if TDS return. TDS return was required to be file by 30 April 2018 if agreement for rent din't end during the fy 2017-18.

4. Yes. They can claim refund of TDS paid. The due date for return filing has been extended to 31August. They can also revise the return, if the return has already been filed.

Dear Sir,

1) Rs.50,000 p.m. limit is per individual.

2) Yes you were liable to deduct TDS.

3) If the owners of the property files the ITR and declares total amount of rent received and pays the taxes accordingly then at the time of scrutiny submit the copy of their ITR along with CA certificate.

Thanks

Hi,

Please refer the replies inline below:

1. You have to deduct TDS irrespective of joint ownership.

2. Yes you are liable to deduct TDS under the existing provisions.

3. You are required to deduct TDS and deposit with interest of 1.5 % from the date it was deductible till the date of deduction. Pay as soon as deducted, otherwise u need to pay additional interest.

4. We can calculate this only when full computation of tax and interest liability is computed.

5. Whenever u deduct, it will reflect in 26AS as you would need to file TDS return and issue the relevant form 16B to the owner. It will be definitely useful for him to claim the tax credits in his respective tax return. However if you are deducting the taxes for older years then we will have to see how he can claim refund via revision of tax returns already filed.

Thanks

Damini

Hi,

Please find below the response to your queries

1. The rental limit of INR 50k is per owner

2. Yes, you are liable to deduct TDS.

3. You should deduct going forward.

4. You will have to pay interest @1% per month for late payment of TDS

5. Yes. They can claim refund of TDS paid.

Regards,

Nikhil.

If monthly rent payable >50k then you must deduct TDS @5% in your case you have paid 53k then have to deduct TDS accordingly & deposit . You can deposit the TDS in the last month of the year i.e. March to avoid any int & penalty. 5% on 318k for husband & another in name of wife .