reason for higher deduction of tds on rent

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  1. Dear Puru

    Dear Puru New Member

    One of our client has paid a tds on rent Rs. 2861 & paid Rs. 15839 to landlord. The rate in which it is deducted is 2861/(2861+15839)*100 i.e. 15.03%, whereas normal rate is 10%. what might be reason for such higher deduction..? & moreover turnover is around 53 lakhs which is less than 1 crore, so tax audit is not required. so no need to deduct tds at all right if the payment is made by a person/HUF whose turnover is less than 1 crore in a year.... please expalain it please.

    Thanking you.
    Purushottam Silwal
  2. rudrabose

    rudrabose Active Member

    Dear Purushottam

    Your interpretation is correct.
    1. TDS on Rent is 10%
    2. If the rent is being paid by a person not liable to Tax Audit, it is not mandatory to deduct TDS. It is optional for a person not liable to tax audit to either deduct or not deduct TDS. However, if he has deduct TDS - he has to deposit the same with govt.
    The manner in which TDS has been deducted in the above mentioned case is not clear. You should contact the person who has deducted the TDS and ask him for more details.
  3. Dear Puru

    Dear Puru New Member

    Dear Rudra Bose ,

    Thank You for the reply to my question.
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