Payment of advance rent

This query is : Resolved

Govind Jha (Querist)
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26 December 2013 if society has paid Rs. 600000 as advance rent to another society but rent not exceed to 180000 during the f.y. in that situation society liable to deduct tax. please reply

CA DHEERAJ

CA DHEERAJ (Expert)
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26 December 2013 Dear Govind

If current year rent is not exceed rs. 180000 than it is not required to deduct tds u/s 180I

So You show the amount in balance sheet adavnce except rent amount

because in law in not prohibit to deducted tds but when Filling of return you claim tds only of that year which income you shown in return and balance tds claim by sbubsequent year of proposnate of income

so in my opinion you show the amount as adavance and not deduct tds of the whole amount

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 January 2014 1. If advance rent + actual rent exceeds Rs. 1.8 lakhs, then TDS is required to be deducted.

This is because as per Section 194-I, TDS is required to be deducted at the time of credit or PAYMENT, whichever is earlier.

Accordingly, TDS is also required to be deducted at the time of advance rent if the advance rent + normal rent exceeds Rs. 1.8 lakhs.

2. However, if the advance rent + normal rent does NOT exceed Rs. 1.8 lakhs, then TDS is NOT required to be deducted.

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