Question ID : 40730

TDS on Combined Bill for building rent with parking lot on lease

There is a bill raised by the party for rent building and there is a parking lot taken on lease. My query is how TDS will be deducted on the same Whether on total amt TDS will be deducted u/s 94-I or separate TDS and TCS will be deducted or collected??

1. If the rent agreement between the the tenant and landlord is for the lease of the building and parking lot and the leased properties are not used by the tenant for his business, then income tax is to be deducted under section 194I on the total bill amount. 2. If the leased out properties are for the business purpose of the tenant , the landlord should include 2% TCS also in the combined bill ,then the tenant need to deduct income tax under section 194I on the rent amount only.