As per section 194(I), TDS on rent has to be deducted by every payee except Individual and HUF.
Reading the text of section we can conclude that TDS has to be deducted even by charitable trust.
But in a order by Supreme Court in case of CWT vs Trustee of H.E.H Nizam’s Family (Remainder Wealth ) Trust  108 ITR 555, court held that trust should be classified as individual if the portion of trustees is fixed.
If the share of each trustee is fixed and predetermined than trust can be classified as individual and TDS is not applicable.
However before making any presumption, make sure that trust can be classified as individual as per the said verdict of supreme court.
Posted 3 years ago by CA Pulkit Sharma
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