194I TDS on Rent

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This discussion clarifies how to account for rental income and TDS under Section 194I when payments are delayed. According to mercantile accounting principles, rent income should be declared monthly as it falls due, even if the payment is received later. TDS deductions can then be adjusted at the time the rent is actually received.

abhijit majumder

abhijit majumder (Querist)

08 May 2025 Sir.
The Company have some guest houses which they leased to a party on monthly rent (Rs.100000/-er month)basis on agreement.
As per agreement current month's rent fall due at the end of the month and have to pay within 7 days of next month.
But the party often fails to comply the time frame. ie they pay 6 months rent at a time after 6 month.
My query is does we have to show rent due(with necessary TDS adjustment U/S 194I) from party in our account(as debtor) at the end of every month though actually we received rent after 6 month or shows in our account only when rent actually received.
Regards
Abhijit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 May 2025 You have to declare rent income (due) every month, as per mercantile system of accounting. TDS deduction can be adjusted at the time of actual rent received.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2025 Good luck.....

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