Tds on rent

This query is : Resolved

Rajesh Goyal (Querist)
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03 April 2015 Dear Experts,

A assessee was paying Rs. 20,000/- as rent to the owner of the godown during the year 2014-15.
On December he realised that he was suppose to deduct TDS on rent of Rs. 20000/- pm and from december he
started deducting TDS of Rs. 2000/- on rent paid.

Now the issue is what about TDS on rent paid on earlier months(April - Nov) and how will the assessee
file his TDS return so as to avoid late payment fees, Interest and penalty.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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03 April 2015 He has to remit the tds amount on each month i.e., April to November by adding 1.5% interest per month. Again 1st, 2nd and 3rd Qtr, Section 234E attracts i.e., 200 per day

Therefore, my suggestion is -
1. Remit the entire tds balance amount(i.e., April to November) on or before 7th April, 2015 without any interest; and
2. Show the date of payment, in your tds return, (4th Qtr) is 31st March 2015

I know that, it is not correct practice. However, it will save from huge interest and penalty.