Bank is liable to deduct TDS@10% unless you have not submitted PAN to the bank. You can adjust TDS amount against final tax liability while filing ITR.
For detailed discussion you may opt for phone consultation.
Tenant (Nationalised Bank) is deducting 20% TDS on rent
Hi, My tenant (a large nationalised bank) deducts 20% as TDS every month. The rent per month (as per agreement) is 94000 Rupees for the branch they operate. From what I gather, Bank is liable to deduct 10% TDS as they are a commercial public-facing entity paying more than 50000 Rupees per month as rent to me. They cited that they are deducting 20% TDS because my overall income falls under the High-Income group and thus I (as a landlord) fall under the 20% tax bracket. Please note I also work for an MNC company in India as a salaried employee and my company deducts TDS per my annual earnings. Is there any truth in the above statement Bank is making to deduct 20% TDS on rent? What action can I take against them? How will I get a refund on the excess tax I am paying
Asked 2 years ago in Income Tax
The bank is deducting excess TDS. The bank should deduct the TDS @ 10% u/s 194I on rent. 20% TDS must be deducted only in case of non-availability of PAN.
You can send a request letter to the bank and ask them for the correct deduction.
The excess deducted TDS can be claimed as a refund when filing Income Tax returns.
Dear Sir,
Hope you are doing well !!
Yes, bank is liable to deduct TDS@10%
In the absence of a valid PAN, TDS can be charged at the rate of 20% or higher.
You can adjust the excess deducted against final tax liability and get the refund for surplus part while filing ITR.
No there is no truth in above statement.
Generally this 20% rate is used if your PAN and aadhar is not linked or if you have not filed your income tax return for last 2 years.
Other than above no reason can make your tenant deduct 20% TDS.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
Your bank should ideally deduct @ 10% unless PAN is not furnished or ROI for 2 years is not furnished. You can make request through letter to bank to deduct at 10%. Meanwhile you can claim refund of excess TDS by filing ITR.
Hi,
This is not as per the law. If you are an Indian resident and provided your PAN number to the bank, they are liable to deduct TDS only @10%.
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