| Originally posted by : harish sharma | ||
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Originally posted by : ca.vijay singla Originally posted by : harish sharma section 194I use the word "any amount paid or credited for use of land building furniture machinary" here the word used is any amount and not rent for current year hence amount received as advance rent will be liable for tds in the year of receipt. here in this regard one point is importent to note and that is that the person receiving rent will be elligible for tax credit of tds in the same proportion in which rent income will be offered for tax. for example if advane rent received is for 3 years on which tds is 30000 than person receiving rent will take tds credit using single tds certificte for all three years of rs 10000 each of three years. Dear Harish if tds is deducted on advance amount how will he claim tax credit in the 3 years or so with single certificate when rent in next three years are less than the threshhold limit.. how will he show tds in the itr. moreover 26as will also not show tds in the next years. sir the threshhold limit is only for deductor and it has no impact on receipent.deductor will be free when he dedut tax in the year of payment and this will so even if receipent offer income in different years he will treat it as an asset and credit it to p&l proportionatly and claim ta credit as per sec 199(iiia) |
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dear harish i know that threshhold limit is for deductor. i think u did not get my point. i mean to say if for dedutee (female)the only source of income is rent and it does not cross 190000/- in next three years (keeping in view current year slab rates) then no income tax is paybale by her.. how will she show tds in the itr. moreover 26as will also not show tds in the next years. i think in this way she will claim tax refrnd fror the tax deducted in the first year only. pls clearify about section 199(iiia)
CAclubindia
