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Accounting entry for tds on rent

Aditya Sharma (finance advisory) (377 Points)

15 October 2018

Hello,

rent for the month 350000 rent paid 31500 tds on rent 3500

how to pass accounting entries in tally?

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10 Replies

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 15 October 2018

Rent Dr. 35000
To Bank 31500
To TDS Payable 3500

TDS Payable 3500
To Bank 3500
(When TDS deposited)

3 Like

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Mihir Dalia (6 Points)
Replied 15 May 2019

how to pass rent Income Entry with gst /tds in tally.

how to pass rent expense Entry with gst/tds in tally

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 13 August 2019

Hi Mihir, If we assume that GST will also liable in this example, Then entry would be as below for rent as expense.

Rent Expenses A/C Dr. 35,000/-

Input CGST @ 9% Dr. 3,150/-

Input SGST @ 9% Dr. 3,150/-

To TDS Payable 3,500/-

To Bank A/C 37,800/-

& after that

TDS Payable Dr. 3,500/-

To Bank A/C 3,500/-

(At the time of TDS Deposit)

If Rent is Our Income then entry would be.

Party A/C Dr. 4,13,000/-

To Rental Income A/C 35,000/-

To CGST 3,150/-

To SGST 3,150/-

virajitha manusani (audit manager) (22 Points)
Replied 26 August 2020

what is the accounting entry if tds is not deducted by payer do the reciever need to pass any entry for tds and please say entry along with gst

Manzil Arora (Others) (1012 Points)
Replied 27 August 2020

All the above entries shall remain same, and an additional entry will be passed.

The tds amount received shall be recorded as an advance from the payer. In other words, the excess amount received shall be treated as prepaid payment.

This situation will not have any impact on GST or TDS.

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Mihir Dalia (6 Points)
Replied 27 August 2020

In holding of Shares to the companies at present company will deduct dividend amount 5% tds why?

any document submit in company no deduct tds please let me know

Manzil Arora (Others) (1012 Points)
Replied 27 August 2020

Hi Mihir

Previously, company had to deduct dividend distribution tax which was gross up with tax paid to investor. Thus, the dividend recieved were considered as tax free b'coz company had already deducted tax on it.

From April 2020 onward, to reflect income from dividend in the investors' income tax return, TDS will be deducted if dividend received is more than INR.5,000.

Documents: If the shares are held in Demat, the PAN needs to be updated with the Depository. If the shares are held in a physical form, the PAN needs to be updated with the Company’s Registrar.

If required documents are present, 10% TDS is applicable. However, due to corona, rate has been reduced to 7.5%. And, if PAN is not provided on time, a flat rate of 20% will be charged.

Ayushi Arora (298 Points)
Replied 15 February 2021

Rent Dr. 35000 To Bank 31500

To TDS Payable 3500

TDS Payable 3500

To Bank 3500 (When TDS deposited)

If required documents are present, 10% TDS is applicable. However, due to corona, the rate has been reduced to 7.5%. And, if PAN is not provided on time, a flat rate of 20% will be charged.

Ayush (Executive ) (6760 Points)
Replied 23 December 2023

The TDS is deducted at a rate of 10% on the rent, but it is applicable only if the annual rent exceeds the threshold of Rs 2,40,000.

Entry for Rent Paid:
Rent.....Dr. [This increases the expense account for rent, reflecting the payment made]
To Bank [This shows the reduction in the bank balance due to the payment of rent]
To TDS Payable [This is a liability account representing the TDS but not yet paid]

Entry for TDS Payable (when paid)
TDS Payable.....Dr [This decreases the liability account, indicating the payment of TDS to the government.]
To Bank [This reflects the reduction in the bank balance due to the TDS payment.]