26QC

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An individual paid rent for March 2020 in December 2020, after the financial year had ended. They are seeking guidance on whether they can still deduct TDS at 5% now and file form 26QC for FY 2020-21. The advice given is to deduct TDS in the current month, meaning the landlord will account for 13 months of rent in the current financial year, which is acceptable and avoids penalties, though interest may apply.

Ajay Chandak

Ajay Chandak (Querist)

25 December 2020 Unaudited assessee use to Pay rent of 60000 PM. .. was liable to TDS @5 %
due to Covid 19, rent of march 20 was paid in 10.12.20. can he deduct TDS now..
26QC showing FY 2020-21 , if he shows he paid in march 20.. He is liable to Panelty and Interest. Plz guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 December 2020 Yes deduct now and show deduction in current month.

Ajay Chandak

Ajay Chandak (Querist)

26 December 2020 Sir if u deduct in current month n year.. In march 21 I will again deduct.
In books of landlord.. tds n rent amount will double in fy 20-21.. how land lord will consider same

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 December 2020 Not a problem land lord has to consider 13 months rent in current year. Otherwise 1% per month interest only payable no penalty.

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