07 December 2010
We take a premises on rent. We have given them 3 months rent as security. Now we are cancelling the contract before the time. So its decided tat the security deposit will be kept by the land lord. Do we hav to deduct the TDS? If so at what rate? How is the accounting to be done?
07 December 2010
Yes TDS has to be deducted while settling the contract.
As per Sec 194I rent include any thing whether it is advance rent etc. The security deposit which is to be kept by landlord can be regarded as rent. Further it will be on safer side always to deduct TDS.
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