194I TDS on Rent

This query is : Resolved

abhijit majumder (Querist)
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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)
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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.