Advance rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2010 I have received advance rent for 2 years and tds has been deducted on the full amount. Do I have to declare the full amount of rent in this year itself ? Can i offer only proportionate amount and offer the balance in the next year ?

Please confirm

Aditya Maheshwari

Aditya Maheshwari (Expert)
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02 October 2010 The matter has been considered by the Board and it has been decided that credit for tax deducted at source shall be allowed to the assessees on whose behalf such tax has been deducted and to whom certificate for tax deducted at source has been furnished under section 203 as under :

(i) In such cases as referred to in (a) above where advance rent is spread over more than one financial year and tax is deducted thereon, credit shall be allowed in the same proportion in which such income is offered for taxation for different assessment years based on the single certificate furnished for tax so deducted on the entire advance rent.

(ii) In respect of the situation as at (b), credit for the entire balance of tax deducted at source, which has not been given credit so far, shall be allowed in the assessment year relevant to the financial year during which the rent agreement gets terminated/cancelled or rented property is transferred and balance of advance rent is refunded to the transferee or the tenant, as the case may be.—Circular : No. 5/2001, dated 2-3-2001.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2010 However 26as shall not tally if i spread TDS over 2 years.

My question is can I claim TDS as it is, ie for the year in question itself and offer rent spread over two years.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 October 2010 In ITR in TDS schedule show Total tax deducted full and in Amount out (6) of claimed for this year (7) show tha mount being claimed this year.