Tds query - 3rd quarter return

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Sathish Raj (Querist)
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02 January 2014 My understanding of TDS deduction on rent 194I is as follows. Rent of September paid in October needs to be TDS deducted and remitted to Government account before 7th day of November and likewise for October rent paid in November, TDS deducted and remitted in December. My query is 1. Is my understanding correct. 2. If the above is correct then which are the correct months for TDS returns in the 3rd quarter, are they the rental months, rent paid months or the TDS amount paid to Gov't months ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 January 2014 Dear Sathish,

you just need to cover the TDS deductible for the relevant quarter. So for 3rd quarter, TDS deducted for rent for month of sept, oct, nov is to be considered. However, the situation will change in quarter 4 as provision for rent for March (which you need to book on accrual basis) would entail that you deduct TDS for march on 31 march itself.

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Sathish Raj

Sathish Raj (Querist)
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02 January 2014 Thanks for the prompt reply Sir. So for the 4th Quarter there will be 4 deductions which will include the March projected deductions.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 January 2014 yes in case you are following accrual system of accounting. In case of cash basis, there wont be any provision. So in such cases there will be only 3 deductions. In accrual basis, there should be four deductions.

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