tds deducted on rent received in advance

Tax queries 2179 views 5 replies

Kishor Ashok Shinde

Student

39 Points Joined November 2008

i have received Rent of Rs.270000/-(net of TDS) in november for the period november 2009 to october 2010.

it is @ 25000/- per month.

Thus For the accounting year 2009-10 Rs.25000 for 5 months comes to 125000 & remaining Rs 175000 is for next accounting year.

My Question is that since total TDS deducted in 30000/- on entire Rs.300000/-, whether i should consider total Rent of RS.300000/- as income for the current accounting year as i am going to reduce my tax liability by this TDS of Rs. 30000/- ?

Replies (5)

Amir

Learner

4016 Points Joined December 2009

Dear Kishor,

TDS can be claimed in the year in which income subjected to deduction is offered to tax.

Clause (ii) of Rule 37BA(3) -

Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.

CA Devanshi Gandhi (Ajani)

FCA DISA Mcom CIFRS & LLB

9060 Points Joined February 2009

agree with amir

vijay singla

learner

340 Points Joined February 2010

HOW TDS WILL BE SHOWN IN TDS COLUMN OF THE RETURN LIKE DATE OF PAYMENT AMOUNT OF RENT RECD, TDS DEDUCTED ETC. WILL IT BE SHOWN PROPORTIONATELY?

vijay singla

learner

340 Points Joined February 2010

Member

Management

325 Points Joined February 2010

This is a practical issue. You may not get credit for the TDS even if your deductor files his e-TDS statements because of the splitting. As far as he is concerned, he would show the entire TDS in one year in his statements in Form 26Q. The best solution would be to request him to show the amount as split when filling up the "challan details" portion of 26Q.