Is There a Rule About Not Deducting TDS on Rent with a Landlord's Certificate?

Dear All,

Can anybody tell me if there is any rule regarding not deducting TDS on building rent if the landlord provides us with a certificate like Form 18, 16, etc.?

Rajan Mishra

There is a provision under Section 197 of the Income Tax Act for obtaining a certificate from the Assessing Officer of the I.T. Department to not deduct tax at source on rent or to deduct at a lower rate for buildings let out for commercial use. The landlord (building owner) has to apply for this certificate in Form 13 to the concerned I.T.O. and obtain a certificate. Based on this, the tenant will not deduct tax on rent. This certificate must be obtained every year. This provision is not applicable for buildings let out for residential use. The current limit of rent is 1,80,000/- per annum (increased from 1,20,000 to 1,80,000 during this year).

Thank you both for your assistance. Please advise if I am required to pay Rs. 22,500 per month as building rent for business purposes. Are there any regulations regarding the deduction of TDS if the landlord provides a certificate related to income tax?

Hi,

Please find attached notice on TDS.

Warm Regards,
Ca Vikas Goel