Advance rent

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Subodh Kumar Goel (Querist)
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31 October 2013 X Ltd is a company which receives Rs. 300000 as Rent and Rs. 150000 is Advance rent during the F.Y.2012-13. The tennant has deducted TDS on the whole amount of Rs. 4,50,000 @ 10 %. (45,000). The Advance amounting of Rs, 1,50,000 is for next F/Y 2013-14.However the question arises with regard to whether TDS amounting of Rs. 15000 on Advance can be adjusted while computing the Tax liability for the F.Y. 2012-13 or Not and Rs. 150000 will be be treated as income for F/Y 2012-13.Kindly suggest.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 October 2013 you may claim the credit for tds against the advance rent. But then you will have to offer the advance rent as income in fy 2012-13.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 October 2013 if u follow right accounting principles, the advance rent should be shown as current asset as at 31 march 2013 and tds of rs 15000 should also be treated in the same manner. In subsequent year you should transfer the advance rent to rental income a/c and claim credit of the tds too in the same year.

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