Rental income TDS refundable

Dear Sir's,
                  Can TDS deducted by a Tenant be reclaimed
by the Landlord at the end of the financial year when taxes are filed ? My Tenant is deducting 10% TDS
on the rent.
1.Can I reclaim the TDS. The rent is less than 50K per month.
2.Is it mandatory for the tenant to deduct TDS ?Can I 
   still claim full rent and say that I will pay the Tax later ?

KIndly advice.
Asked 10 months ago in Income Tax from Bangalore, Karnataka
Hi,
Provisions related to TDS on rent have been defined under section 194I of the income tax act 1961. As per section 194I, TDS on rent has to be deducted only when aggregate amount paid or to be paid or credited or to be credited exceeds Rs 1,80, 000 during the previous year.
Section 194I will be applicable to resident of India except in the case of an individual or HUF whose gross receipt or turnover from business or profession does not exceed the limit as prescribed in section 44AB. i.e if your gross income or turnover is more then and equal to Rs 1 cr in case of Business/  RS 25 lakhs in case of profession, then tenant is liable to deduct 10% TDS.
So if you an individual / HUF and turnover is less then as prescribed in section 44 ab, then no TDS is required to be deducted.
If any TDS is deducted then it will reflect in 26 AS , you can see that by login into income tax web site.
You can claim TDS refund while filing IT return, any tax liability is due will be get adjusted with TDS amount .

Vishakha Agarwal
CA, Bangalore
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hi,
have you rented out commercial property and residential house. 
if you have rented out a commercial property then, tenant is liable to deducted TDS and deposit it to government on your behalf.
in case of residential property, tenant is not liable to deduct tds.
as you are not falling under section 44 ab.

it doesnt matter how much is tenant turnover.


Vishakha Agarwal
CA, Bangalore
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sure you will get the refund
here is my number you can call me 9538801976
i am also from bangalore
Vishakha Agarwal
CA, Bangalore
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Dear Sir,

You can claim the tds Deducted by your tenant in your Income Tax Return. Tds liability occurs if the rent payable during the year is more than Rs. 180,000. It is quite clear from your question that Rent received by you is More than Rs. 1,80,000 that;s why your tenant have to deduct 10% TDS on Rent.

 Since Your Tenant is covered under section 44AB of The Income Tax Act,1961 as he is having Turnover of Rs  1Cr. or more, Therefore, he has to deduct TDS on rent payable.

As far as FD is Concerned, Bank deducts 10% of TDS on your Interest on FD and you can claim the same ( TDS Deducted by bank) in your ITR.

You can also claim deduction of Your FD amount (upto Rs. 1.5 Lakhs) as per section 80C of Income Tax Act,1961, if the amount invested in FD is for more than 5 years.

For any clarification feel free to contact us at ca.skagarwal@gmail.com
Call at: 07503638500  

Thanks  Regards
CA SK Agarwal
7503638500




  

 

   
Shiv Kumar Agarwal
CA, Delhi
225 Answers
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Dear Sir,

Any income earned and offered for tax for which TDS paid is more than the tax payable will get refund for sure subject to due reflection of TDS in your 26As and filing of proper income tax return.
Vishrut Rajesh Shah
CA, Ahmedabad
564 Answers
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Dear Sir,

Yes, you can claim the refund of TDS in case your tax liability at the end of the year is less than the tax already deducted as TDS.

However, given that you have FD of 1.5 crore, your tax liability would be more than the your TDS. In that case, TDS will be deducted from your tax liability and you have to pay balance tax.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
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Hello Sir,

As per the information provided by you, it appears that you fall under the 30% tax bracket. In such a case the amount of TDS deducted shall get adjusted against your Tax Liability first and the balance tax shall be payable or refundable as the case may be.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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hope your query is answered . For more info mail at modani005@gmail.com
Shyam Sunder Modani
CA, Hyderabad
1367 Answers
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