One Of our Client pays Rent of Shop every year regularly ... He has not paid Rent from last two years as Co-owners are disputing for getting Rent... As per income tax whether rent exps. is allowable or not ???
1 Replies
Shweta Bansal
(CA)
(175 Points)
Replied 08 February 2011
Rent is a liability and need to be paid either now or latter.
If the rent paid is more than Rs. 1,20,000 then book the rent entry deducting TDS. Deposit TDS and show the remaining balance a payable in balancesheet.
If the rent paid is more than Rs. 1,20,000 then whole amount can be book no TDS required.
If TDS liability arised and no TDS dedcucted you can not claim expense.
Hope this helps.....................:)
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