Tds

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Madhavi (Querist)

26 February 2013 My tenant ( a company) has caused extensive damages to the property. At the time of termination they have agreed to pay for the repairs. The total cost of repairs is approx Rs1,00,000. They also have rental arrears of Rs 1,00,000.

The tenant has deducted 20000 as TDS.

Is he right in deducting TDS on his liability for repairs?

I don't want to treat the repairs portion as Income for my return. Will this cause any issues?

CA Parul Saxena

CA Parul Saxena (Expert)

26 February 2013 Tenant is not supposed to deduct TDS on repair amount...you have just recovered the amount from tenant which you have incurred on account of repair....it is not your income...in statement of profit and loss you can show the amount as:-
Repair & Maintenance............xxxxxxxx
(-)Amount recovered.............xxxxxxx
If the balance is nil then no effect...if it is +ve exp. will be claimed if it is -ve means if you have recovered more than you have incurred then extra amount will be your income.

CA Prashant Gupta

CA Prashant Gupta (Expert)

26 February 2013 agree with CA Parul
they deduct wrong TDS on repair amount
but if you don't show this in your return, a notice will come, because by TDS income tax deptt will trace this amount.

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