Whether TDS deductible on Comepnsation??
This query is : Resolved
13 June 2009
Dear All,
Here is the query
A owner of the Commercial property has entered into leave and Licence Agreement with the Licencee for 5 years and the lock in period is 3 years and has given a refundable deposit equal to 6 months rent to the owner.
The licencee used the property only for one year and decided to terminate the agreement .
As on date the rent outstanding is 4 months and the licencee asked the owner to adjust the same against the refundable deposit and the balance two months deposit shall be treated as a compensation for early termination of the agreement before the lock in period of 3 years.
Query:
whether TDS is applicable on the compensation amount adjusted as above
Regards
Hitesh Khona
Here is the query
A owner of the Commercial property has entered into leave and Licence Agreement with the Licencee for 5 years and the lock in period is 3 years and has given a refundable deposit equal to 6 months rent to the owner.
The licencee used the property only for one year and decided to terminate the agreement .
As on date the rent outstanding is 4 months and the licencee asked the owner to adjust the same against the refundable deposit and the balance two months deposit shall be treated as a compensation for early termination of the agreement before the lock in period of 3 years.
Query:
whether TDS is applicable on the compensation amount adjusted as above
Regards
Hitesh Khona
13 June 2009
For the deposit adjusted towards rent, TDS is applicalbe, for the compensation it like mesne profits not taxable at all under income tax act.
15 June 2009
Thank U for the reply
Regards
Hitesh Khona
Regards
Hitesh Khona
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Internship/Academic shown in Salary Pay Slip of a Doctor
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- Liable to deduct tds and 44ADA
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
