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tds deducted on rent received in advance

Kishor Ashok Shinde (Student) (39 Points)

04 June 2010

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/- ?

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5 Replies

Amir (Learner) (4016 Points)
Replied 04 June 2010

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.

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CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 04 June 2010

agree with amir

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vijay singla (learner) (340 Points)
Replied 28 July 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)
Replied 29 July 2010

Member (Management) (325 Points)
Replied 29 July 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.