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TDS

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This query is : Resolved

Quick Summary

This discussion clarifies the correct TDS deduction date for rent payments. Generally, TDS should be deducted on the earlier of the expense incurred or payment date. If rent is paid on the 5th of the month, TDS should ideally be deducted on the 5th, even if the booking occurs later. Failing to deduct on the correct date could lead to penalties and increased interest charges.

jaya

jaya (Querist)

02 July 2020 Hi,
suppose if i am paying rent on 5th of every month then can we book tds on 30th of that month? and if i mention date of payment as 5th and date of deduction as 30th then the return will not get any default or penalty for that ?

CA Shrey Tripathi

CA Shrey Tripathi (Expert)

04 July 2020 tds to be deducted on date of expenses incurred or date of payment w.e. is earlier. in this case you need to show date 5th as date of deduction

jaya

jaya (Querist)

04 July 2020 that will increase my interest part?

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