DDOs to deduct TDS on rent paid to House Owners

DDOs to watch and act accordingly ( Internal Audit Objection)

3.1.2 Non recovery of TDS for Rs. Approx 95 lacs

to be recovered from the bill of Rent for office premises.

In terms of Rule 194(1) of the Income TaxAct, 1961 income tax @ 20% plus
surcharge/ cess is to be deducted as TDS from the rent paid to owner of hired premises.
On scrutiny of the bills of rent paid by the Securities appellate Tribunal (SAT)
Mumbai it was noticed that the office has paid rent to the tune of Rs.4.69 crores from
November’1998 to March’ 2007, but no TDS had been recovered from the rent bills. This
has resulted loss to Govt. by way of non-recovery of Income Tax amounting to Rs. 95
lacs approx.This was pointed out in previous audit reports, but no action has been taken for
last several years. The office has been instructed to recover the TDS which has not been
deducted by the office so far.