Udgam Koomar (Tax Technologist) (1949 Points)
30 June 2015Hello, my house has been rented and I have received 10 months of security deposit as advance wheich I will have to refund at the end of the rent lease, no TDS has been done on this amount. Now I want to ask do I have to include this deposit in my overall income in the ITR return. If yes then when I refund then how to compensate for this?
Deepak Gupta
(CA Student)
(15922 Points)
Replied 30 June 2015
1. Security deposit collected at the time of letting out a building to a tenant on the condition that the deposit will be refunded at the time of vacating the building, is not in the nature of income and, therefore, TDS u/s 194I is N.A.
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2. Record the security deposit as current liability in your accounts.
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