Dear Friends need some clarification on TDS on arrear Rent payment..
As we all know this is the starting of a new financial we have to close previous year books of accounts..
Previous year I was paying rent of Rs. 18000 p.m hence no question of TDS but as per agreement actual rent was 21000 pm now we are going to pay arrear rent..
please suggest TDS applicable only on arrear amount or whole payment....
No TDS on Rent is liable to be deducted if the Payment is being made by an Individual or HUF who is not required to get his Tax Audit done under Section 44AB
However, tenants who were not falling in the above category are required to deduct TDS @ 5% if the Rent paid is more than Rs. 50,000 pm.
CAclubindia
