Rent is being paid for years @ Rs.9000 p.m. In Aug'09, the rent is revised to Rs.10400 p.m. with effect from Dec'07. Till 2008-09, as the rent paid was less than Rs.120000, no tax was deducted. Now, in 2009-10, tax is to be deducted for the rent of 2008-09. Regarding arrears, the amount of Rs.1400 p.m. is paid this year, so tax is to be deducted. But when the rent is Rs.10400 even in 2007-08, is tax to be deducted NOW for the payments already made in 2007-08.i.e. even for the Rs.9000 p.m. paid in 2007-08?
4 Replies
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 20 August 2009
As per My opinion TDS should be deducted on Arrears Rs.1400 + rent of current Month.
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 20 August 2009
As TDS is based on the payment, and even though for the previous year, as the amount you pay this year is exceeding the limit,you have to deduct TDS... and hey, its better to deduct TDS than not at all deducting and getting penalised by the department right? do go ahead, deducting TDS is your birth right.. ha ha
Hitesh Kothari
(Chartered Accountant M.No. - 134239)
(326 Points)
Replied 20 August 2009
Dear Poornima,
For FY 07-08 : as mentioned first time payment was made for Dec 07 i.e. it will not cross the basic limit of 1,20,000/- for TDs even if it is raised from 9000 to 10400 hence NO TDS reqd to be deducted for that year.
FOR 08-09 : when it was below the limit TDS not Deducted now deduct the TDS on 10400/- and pay it to the Govt since liability to pay TDS arisen now on increse the rent amt (Same applies to FY 09-10 also)
Thanks & Regards
Hitesh
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 21 August 2009
DEAR POORNIMA,
WHATEVER AMOUNT YOU ARE PAYING THIS YEAR (INCLUDING ARREARS) DEDUCT TDS ON THAT AMOUNT MONTHLY @ 15.45% TILL THE PAYMENTS MADE UPTO 30.09.2009 AND @ 10.3% ON PAYMENTS MADE ON OR AFTER 01.10.2009
REGARDS,
RITESH KOTHARI
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