Incorrect deduction of TDS
1 year ago
Why the builder is deducting 10 percent TDS on the rent(commercial shop) which i get even though the annual rent he pays me is 2lakh 20thousand, as per my understanding TDS deduction should be 5percent if the annual rent is less than 2 lakh 40thousand
A.Dear Client
The Indian Income Tax Act mandates that 10% TDS should be deducted on rent paid for commercial properties. However, if the annual rent paid is less than Rs 2,40,000, TDS can be deducted at 5% if the landlord provides a valid PAN. In this case, since the annual rent paid is Rs 2,20,000, TDS should have been deducted at 5%. If the landlord did not provide their PAN, the builder may have deducted TDS at 10%. It is advisable to check with the builder and provide PAN details to avoid discrepancies and claim a refund of excess TDS.
The Indian Income Tax Act mandates that 10% TDS should be deducted on rent paid for commercial properties. However, if the annual rent paid is less than Rs 2,40,000, TDS can be deducted at 5% if the landlord provides a valid PAN. In this case, since the annual rent paid is Rs 2,20,000, TDS should have been deducted at 5%. If the landlord did not provide their PAN, the builder may have deducted TDS at 10%. It is advisable to check with the builder and provide PAN details to avoid discrepancies and claim a refund of excess TDS.
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