Whether TDS shall be deducted on deposit amount given for a property on rent of residential purpose?
7 Replies
JAIMIN K PATEL
(EXECUTIVE ACCOUNT)
(122 Points)
Replied 12 July 2012
No. TDS are not deducted on deposit amt.
Ritesh Jain
(CA, CS in Job)
(675 Points)
Replied 12 July 2012
If the deposit is not refundable, i.e to say if it is adjustable against rent in some equal installment, or as per any customized formula in the agreement, then TDS should be done, otherwise no.
Deposit is not an expenditure, if not adjustable in rent, so no need to deduct TDS.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 12 July 2012
YES ..AGREE WITH ALL
SECURITY DEPOSIT IS REFUNDEABLE
NO TDS IS DEDUCTED.
SUDAGAR.C
(Prop)
(119 Points)
Replied 12 July 2012
Deposit is not an expences. Hence there is no TDS deduction. But if the same adjusted against rent and the rent amount is more than 1.8 lakhs that you suppose to deduct the TDS. Since it is residential purpose there is no qustion of TDS at all.
SASIKUMAR
(ACCOUNTS EXECUTIVE)
(22 Points)
Replied 12 July 2012
SECURITY DEPOSIT NO TDS WILL BE ATTRACTED.
JITENDRA KUMAR GARG
(ARTICLE ASSESSTANT)
(46 Points)
Replied 14 July 2012
no security deposit par tds is not applicable
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