197A exemption certificate

This query is : Resolved

hinduja (Querist)
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07 June 2021 owner of building has obtained 197A tax deduction exemption certificate.it is valid from 4.5.2021-31.3.2022.
owner raises rent bill on 31.05.2021 for the month of may 2021.

1.Do we need to deduct tds from 1.5.2021-3.5.2021 ?
2.Can we deduct zero tds for whole month of may 2021?
3.At the time of of TDS return filing,can we split taxable value into two amounts ,one with tax dedn and other without tax dedn (after quoting certificate no.)for same PAN?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 June 2021 Since rental are accruing on month end, as per tds rule, deduction will arise when the billing booking or payment which ever is earlier. since the rent bill is 31.5.2021 and accrual also the month end you can consider the exemption for May-21 rental. Incase you are paying advance rental then TDS will apply for May-21 Rent