08 August 2011
Section 194I makes TDS Provisions applicable on payment of Income.
Whatever is paid in Month of March is advance for the recipient and not an income. Suppose you vacate premises on 1.4.2011, the amount may be refunded back to you.
So TDS is not required to be deducted as on 31.3.2011.
In the next FY 2011-12, Since the advance rent of April Forms part of the income , TDS is required to be deducted.
Assuming that payment is made on 1.4.2011 TDS is required to be deducted on 1.4.2011.
However, experts may have a different view, so please wait.
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