Need Advice on Rent and TDS Proof Submission for Co-Owned Property
Hi all,
I’m facing an issue with my rent and TDS proof submission for this fiscal year, and I could really use some advice. Here’s the situation:
I pay a monthly rent of ₹66,000 for a property co-owned by two individuals. Effectively, I pay ₹33,000 to each owner. Since the rent paid to each owner is below ₹50,000 per month, I understand that I don’t need to deduct 5% TDS.
However, my company’s proof submission portal has a limitation—it allows me to enter details (name and PAN) for only one owner. When I reached out to them, they suggested splitting the rent into two "houses" in their system. Their recommendation:
From April to September: Show ₹66,000 rent under one owner's name.
From October to March: Show ₹66,000 rent under the second owner's name.
But here’s where I’m stuck:
From what I’ve read, even if I show ₹66,000 for six months under one owner, it’s still considered ₹66,000 per month, and I may be required to deduct 5% TDS since it exceeds the ₹50,000 threshold.
Could any CA or expert confirm if this approach would be valid, or if it would lead to compliance issues later?
As a workaround, I’m considering declaring ₹49,000 as the rent to bypass the portal issue, with plans to rectify it during ITR filing if necessary.
Lastly, isn’t this a company issue? Shouldn’t their system be capable of handling cases like mine where the rent is split between co-owners?
Is there a better way to address this? Any guidance or advice would be greatly appreciated!
Thanks in advance!