Tds on rent

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This query is : Resolved

anil lamboria (Querist)

09 April 2013 -Bank had not paid rent for building.
-Landloard had filed a disput for rent recovery.
-Then bank had paid 50% amount of rent in the court,

then what will be the treatment for TDS on Rent and also it's Accounting treatment.

CA Krunal

CA Krunal (Expert)

11 April 2013 Under what order amount paid to court is quite important.

Amoutn would have been paid to court as a security deposit for verdict hence normally no TDS is deductible and same is to be accounted as deposit to court

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

30 May 2013 You have to pay the TDS on rent on accrual basis whether it is paid to you or not. If money is deposited in the court the same can be withdrawn and tax can be paid as advance tax and due intimation is to be given to the bank as well as this point is to be brought to the notice of the court that although the bank is not paying the rent you are to pay income tax. The court will take the view in your favour. You can pay Income Tax at old rate and as and when enhanced rate of rent is received you can pay the tax at the time of receipt.

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