Tds on rent

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This query is : Resolved

Rajesh Goyal (Querist)

03 April 2015 Dear Experts,

A assessee was paying Rs. 20,000/- as rent to the owner of the godown during the year 2014-15.
On December he realised that he was suppose to deduct TDS on rent of Rs. 20000/- pm and from december he
started deducting TDS of Rs. 2000/- on rent paid.

Now the issue is what about TDS on rent paid on earlier months(April - Nov) and how will the assessee
file his TDS return so as to avoid late payment fees, Interest and penalty.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)

03 April 2015 He has to remit the tds amount on each month i.e., April to November by adding 1.5% interest per month. Again 1st, 2nd and 3rd Qtr, Section 234E attracts i.e., 200 per day

Therefore, my suggestion is -
1. Remit the entire tds balance amount(i.e., April to November) on or before 7th April, 2015 without any interest; and
2. Show the date of payment, in your tds return, (4th Qtr) is 31st March 2015

I know that, it is not correct practice. However, it will save from huge interest and penalty.

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