is tds applicable on interest paid to landlord for delayed payment?
4 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 23 January 2011
interest is additional rent increased for delayed payment ......so treatment should be same as rent.
CA Aaditendra Bhartiya
(In practice)
(54 Points)
Replied 24 January 2011
mr sharma,
please clearify ,
m not arguing with you,just asking that
TDS should be accounted on the date of due or payment which ever is earlier
as in above case
if TDS entry was passed on date of accrual of rent
then whether one more entry is to be passed on interest accrued on delayed rent.?
and in TDS return, whether the whole amount (rent+interst) as rent
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 24 January 2011
| Originally posted by : aaditendra | ||
 |
mr sharma, please clearify , m not arguing with you,just asking that TDS should be accounted on the date of due or payment which ever is earlier as in above case if TDS entry was passed on date of accrual of rent then whether one more entry is to be passed on interest accrued on delayed rent.? and in TDS return, whether the whole amount (rent+interst) as rent |
 |
usually the rent is accounted on the date of payment except year end, as like other utility bills viz telephone , electric ity, security etc. and TDS is deducted on that very day only.
if any interest is paid for delay payment in rent, then its not a matter of days but for longer periods, so one can not judge the quantam of interest accured unless the actual payment is made / notified by the landlord, so the book entry of interest accured does not appear unless its billed / claimed by the landlord ( unless otherwise interest is in written agreement and maintained by both landlord and tenant both).
any sum paid to landlord would go in rent account usually, so is the interest.
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