14 January 2010
Tax has to be deducted under section 194I as such deposit represents the consideration for the use of land/building and, therefore, partakes the nature of rent. Citation:- Circular 718 reported in 215 ITR (St) 68.
18 January 2010
TDS is deductiable at the time of giving the deposit, if the condition for adjustment of rent at the time giving the deposit persist. If the condition is not persist at the time of giving deposit but it turns out to be of such nature at the the time of vacating the property it is to be deducted at that time.
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