Tax filing on rent

I have given a commercial building on rent ( for vehicle service). On 01/12/2020 While making an agreement the client had given me an advance of Rs.10 lakhs which is agreed to deduct Rs.10000 each from monthly rent for 100 months. TDS @ 7.5%, ie Rs.75000 was deducted and paid to TDS department in my PAN. 

Actual rent-                           33,000 per month

Advance rent deducted-  (-) 10,000

Less TDS @ 7.5%             (-) 1725

Amount credited to Bank      21275

While filing ITR for FY 2020-21, In  26AS the total TDS deducted was Rs.81900(Rs.75000+ 1725*4) against amount credited Rs.1092000.

Will the rent advance Rs.10 lakhs will be treated as income in FY 2020-21 itself . If not, how much amount is need to show as rental income in Fy 2020-21. 

Can I Claim entire TDS credit in this FY. 

Kindly help

Replies (3)
Quick Summary
This discussion clarifies the tax implications of receiving advance rent for a commercial property. It explains that advance rent is generally considered taxable income in the year it's received, even if it's deducted over time. The user also inquires about claiming the full TDS credit and how much rental income to declare for the relevant financial year.

The amount paid as rent and tds deducted can be claimed.

Advance rent is taxable in the year of receipt being earlier than due thus taxable.

Yes, rent received in advance is income at the time of receipt, and therefore subject to both TDS and income tax.

However if it's a fully returnable security deposit, then no TDS and not subject to income tax.

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