Rent Deposit

This query is : Resolved

rgurucharan (Querist)
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08 June 2009 Dear sir,

I have made a rent deposit for the Fy 2004-05 of Rs. 100.
The Rent agreement is already ceased in the FY. 2005-06. The Owner of the building has refunded only Rs. 20 as on 31/03/2006.

The Balance amount of Rs. 80 is being adjusted towards rent and repairs, Painting etc.

For Rs. 80 which is towards rent & repairs is attracting the provisions of TDS.

I have to deduct the tds on rs. 80 or not?

Pls clarify at the earliest.

with regards,

R. Gurucharan.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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08 June 2009 Yes. You are just adjusting the payable amount with your recievable amount. But TDS has to be deducted on the expenses incurred. You will definitely debit the rent and repair and maintenance in your P&L account. So TDS is definitely to be deducted at all at the prescribed rates.