House property

This query is : Resolved

JAWAHAR (Querist)
Follow

21 September 2009 My client has received rent after deducting TDS for letting out a Building. His monthly rent is 20,000/ and receiving the amount after deducting TDS. Before the rent given the company given 19,00,000/ as advance asper the agreement. my client constructed a building which is required for the company. when the amount given as advance they have deducted TDS for that amount. Now received the TDS certificate the total amount of rent received is 21,60,000/ and for that amount TDS deducted as the whole amount.. How can file his return? Whether I have to declare full amount ie, 2160,000/ as Rental Income? Actually he has utilised the amount for construction of building...How will it become his income? Moreover now this year rent is getting 20,000/ per month.. What I have to do to file his return?

Rajeev

Rajeev (Expert)
Follow

22 September 2009 jawaharji, i dont understand why was the advance given as 19L( almost 100 months advance ) for a monthly rent of 20K , was it in the nature of a deposit ?
and if it was deposit why was tax deducted ? and if advance was paid for almost 100 months , why is rent still being paid ?

Kindly answer ...the charging section of Hp is unfavorable to u