TDS on rent

This query is : Resolved

CA Robin Betala (Querist)
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25 March 2010 If a firm crediting the amount of rent to tenant a/c on the last day of year in 2009-10 for the whole year which rate of tds is applicable.

As there are two rates for the year

1-04-09 to 30-09-2009 15%
01-10-09 to31/03/2009 10%

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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25 March 2010 Rent is to be paid/payable on monthly basis, if your following accrual basis of accounting. so, deduct tax from 1-04-09 to 30-09-2009 15% + 3% EC and from
01-10-09 to 31/03/2009 10%.Rent you can not credit on the last date of the year.

CA Robin Betala

CA Robin Betala (Querist)
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25 March 2010 What about the provision of section 194 I which say tds is to be deducted on payment or credit which ever is earlier.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 March 2010 It is accural basis.you are not accounting the expenses in time is your mistake.the TDS rate will applicable the respectiv rate for the respective period