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TDS on rent of cancelled deal or agreement

sanjeet gupta (student) (44 Points)

12 January 2010

Dear All

could anybody please help me.

Our company entered into one lease warehouse agreement and we paid the three month rent in advance (Rs. 3,50,000) and deducted the TDS (Rs.35,000) and paid to NSDL(Income TAx) but situation is that agreement get cacelled for some technical reson and we recieve the amount of rent back accept the TDS which we paid to goverment . Now can we claim the TDS as refund or can adjust it against some other Rent agreement which have taken place after the TDS payment or against salary TDS ??

Please guide !!

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4 Replies

Amir (Learner) (4016 Points)
Replied 12 January 2010

Dear Sanjeet,

This is indeed a Practical bomb.....

Well, I don't think there is any set procedure in this case...

What u can do in this situation, since TDS has already been deposited U give the TDS certificate to the Landlord of Rs. 35,000 so that ur Landlord can cliam that amount in his return of income...Incase he has other Income then well & good otherwise he has to claim refund after filing his ITR..

Further collect Rs. 35,000 from ur Landlord against the issue of TDS certificate, & credit it to Rent a/c so that the impact on Ur profit & loss a/c gets nullified..Which I think at present showing Rs. 35,000 as excess (i;e after crediting Rs 3,15,000)

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Krutesh Patel (ACA) (727 Points)
Replied 12 January 2010

As per provision of income tax, if you have wrongly deducted amount of TDS or you have deducted TDS when it was not required to deduct, in such case it is only deductee who can claim refund or set off of such amount.

So in your case you can not claim refund of amount of TDS. You issue Form 16A to other party and he will claim TDS in his income tax return

Deepak Kumar Mohata (Student) (37 Points)
Replied 13 January 2010

Hi frnds

Dont u ppl think that it is possible to revise the tds return and adjust the tds so paid with some other deductees account whose tds has been deducted by the company..