If there is an rent agreement between two parties to pay rent on 30th day of each month and the payer is eligible for deducting tds. The payer is neither paying nor crediting the account of payee with rent income on due dates. In this situation whether the deductor is liable to deduct the tax at the time of crediting the account or paying the income hichever is earlier??
in doing so he can postpone his liability to deduct tax as he is not crediting nor paying the income on due dates and also less amount of interest will be levied on him in case of delayed payment of tds to govt. as delayed period will be calculated from 7th day from the end of the month in which income is credited/paid and not from the due dates as per agreement.
one more thing is that the payee is accruing the income in his books on due basis as per rent agreement..
If there is an rent agreement between two parties to pay rent on 30th day of each month and the payer is eligible for deducting tds. The payer is neither paying nor crediting the account of payee with rent income on due dates. In this situation whether the deductor is liable to deduct the tax at the time of crediting the account or paying the income whichever is earlier??
in doing so he can postpone his liability to deduct tax as he is not crediting nor paying the income on due dates and also less amount of interest will be levied on him in case of delayed payment of tds to govt. as delayed period will be calculated from 7th day from the end of the month in which income is credited/paid and not from the due dates as per agreement.
one more thing is that the payee is accruing the income in his books on due basis as per rent agreement..
CAclubindia
