Tds on arrear rent paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2012 Dear expert,
my client is a proprietary concern.His landlord increased the rent for the premises retrospectively for the year 2011 wanted to collect during the year. Whether we need to deduct TDS on that amount or not. Please advise

Amol S Joglekar

Amol S Joglekar (Expert)
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11 August 2012 Yes. If your client falls under the ambit of sec 194I, the TDS be deducted on arrears of rent as well.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2012 Sir, this arrears of rent becomes last year expenditure can the asessee claim expenditure during the year

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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27 July 2025 Yes, TDS should be deducted on **arrears of rent** paid, as per Section 194I, just like on current rent payments.

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### Regarding the expenditure claim for arrears of rent:

* If the arrears relate to **an earlier year**, but payment is made in the **current year**, then as per accounting and income tax principles:

* The assessee can **claim the expenditure in the year of payment**, i.e., current year, since that's when the outflow happens.

* Even though the rent relates to the previous year, if it was not paid then and is paid now, it becomes an allowable expense in the current year for the purpose of tax.

* However, the assessee should maintain proper documentation and explain the nature of arrears in the books of accounts and tax return.

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### Summary:

* **TDS on arrears of rent — Yes, deduct under Sec 194I.**
* **Expense claim — Allowed in the year of payment (current year), not the earlier year.**

If you want, I can help draft the TDS calculation or entry for arrear rent.

Amol S Joglekar

Amol S Joglekar (Expert)
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24 February 2026 Yes. The expenditure can be claimed this year

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