Regarding TDS not deducted on rent

This query is : Resolved

Jaswinder singh (Querist)
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30 October 2025 Respected Colleagues,
In the books of client, business started in dec 2024 and office rent 78000/- per month till March total rent Rs 312000/- , No turnover in the business in FY 2024-25, So now we want to file Tax audit report u/s 44AB(e) to carry forward our business expenses to next year,
Now my ques is, all the rents from dec to march 2025 paid after march 2025 and TDS not deducted on it, So in TAR when we disallow in clause 21, there is a column states ''DATE OF PAYMENT'' of rent, but there was no payment made in FY 2024-25, all the rents in payable position, So how we deal in this position

Please advice

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 October 2025 Clause 21(b) – Disallowance for Non-Deduction of TDS (Section 40(a)(ia))
Applicability: Disallowance arises only if the amount is paid or payable to a resident on which TDS was required to be deducted but has not been deducted/paid.

In your case, rent is only accrued and payable, not paid.

Since no payment was actually made during FY 2024-25, the "Date of Payment" column should be left blank or marked as "Not Applicable" (N/A) for those rent entries.

Clearly mention in your working/note to auditor that the rents were outstanding as at 31.03.2025 and were NOT paid during FY 2024-25 and hence, no TDS was deducted.

Jaswinder singh

Jaswinder singh (Querist)
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31 October 2025 Ok sir thanks a lot really appreciate

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 October 2025 You are welcome.

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