2003 (8) TMI 31 - HC - Income Tax

Tax deducted at source building given on rent to a bank - status of payee - If the payee is an individual entitled to receive rent in excess of Rs. 1,20,000 per annum then the payer is obliged to deduct 15 per cent. thereof as tax deducted at source. If the payee is a body of individuals and if the rent payable exceeds Rs. 1,20,000 per annum, the payer is required to deduct 20 per cent. thereof as tax deducted at source. - tenant-bank was right in proposing to deduct tax of Rs. 99,198 as tax deducted at source while agreeing to pay a sum of Rs. 6,20,512 to the petitioners jointly as and by way of rent

Summary

The High Court of Calcutta ruled in a case involving a property dispute between petitioners and United Bank of India regarding rent payment and tax deduction. The court found that the bank correctly deducted tax at source as per Income-tax Act Section 194-I. The petition was disposed of with directions regarding rent apportionment. (Case citation: 2003 (8) TMI 31 - CALCUTTA High Court, Judge: BARIN GHOSH)