Urgent : tds on rent delayed deduction & non payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 We are paying rent to party “A”. Rent for thr period from Apr 12 – Nov 12 was Rs. 14520/- from dec ’12 rent increased to Rs. 15990/- per month. we have not deducted or paid TDS till Nov 12. Tds deducted for the period from Dec 12 Rs. 1599 p.m.. Kindly let me know the TDS liability and Interst liability on delayed or non deduction of TDS. Its urgent

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 Please reply

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 Need reply urgently

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Here’s a detailed reply on your TDS on rent delayed deduction and interest liability:

### Facts:

* Rent paid Apr 2012 to Nov 2012: Rs. 14,520 per month
* Rent from Dec 2012 onwards: Rs. 15,990 per month
* No TDS deducted for Apr to Nov 2012 period
* TDS deducted only from Dec 2012 onwards (Rs. 1,599 per month)

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### 1. **TDS liability on Apr to Nov 2012 (Delayed period)**

* TDS should have been deducted at the time of payment or credit (whichever is earlier) for the period Apr to Nov 2012.
* Assuming TDS rate on rent is 10% under Section 194-I.
* For Apr-Nov 2012:
8 months × Rs. 14,520 = Rs. 1,16,160
TDS on this = 10% of Rs. 1,16,160 = Rs. 11,616

You have not deducted this amount, so you are liable to deduct this now and deposit it.

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### 2. **Interest liability on delayed deduction and non-payment**

* Under Section 201(1A), interest is payable for delayed deduction and delayed deposit of TDS.
* **Interest for delayed deduction:** 1% per month or part of a month from the date TDS was deductible till the date of actual deduction.
* **Interest for delayed deposit:** 1.5% per month or part of a month from date of deduction till date of deposit.

You need to calculate interest separately for each month of delay on Rs. 10% TDS amount (Rs. 14,520 × 10%) for Apr to Nov 2012.

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### 3. **Steps to regularize**

* Deduct TDS for Apr to Nov 2012 immediately.
* Deposit the TDS amount along with interest as calculated above.
* File TDS returns including the delayed period.
* Issue TDS certificates to the deductee for this period.
* For future months, deduct and deposit TDS timely.

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### 4. **Summary**

| Period | Rent per month | TDS @10% | Total TDS | Interest on delayed deduction + deposit |
| ------------------- | -------------- | --------- | ---------- | --------------------------------------- |
| Apr 2012 - Nov 2012 | Rs. 14,520 | Rs. 1,452 | Rs. 11,616 | To be calculated as per delay period |

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**Note:** Interest calculation can be tedious. I recommend using the Income Tax Department’s TDS interest calculator or consult a CA for exact figures.

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If you want, I can help you draft a calculation template for interest or guide you through filing the return for the delayed period. Would you like that?

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