Issue of tds on rental / lease advance.

738 views 1 replies

SECURITY  DEPOSIT

That the Lessee has paid to the LESSORS equivalent to 3 months’ rent as interest free advance rent as refundable security.

The deposit is repayable by the LESSORS to the LESSEE against the last four months’ rent on expiry of the lease period, or on termination of the lease or on termination of the lease even before the expiry of the lease in which case the LESSEE may demand the LESSORS to adjust the deposit amount towards rent for the notice period and to refund the balance amount, if any.

No here the issue is , the last four months where the deposite is to be adjusted is after 5 yrs from today. S

I need clarifications as below. 

1. Can the Leesee cut TDS at the time of payment of Security Deposit, which is actally going to be adjusted after five years?? 

(as of now this money would be just a deposit in the books of A/c and not as rent income, then how is the TDS applicable. but its actual income will be after five years, when the Rent invoice is raised for the last for months.)

2. If they cut the TDS, then how to do Auditing of the TDS? as the amount treated is not rent received. so agains this issue arrises of what to do is the TDS is cut.

3. After 5 yrs, when this is going to be adjusted against the rent, whether again the TDS has to be cut??  it has already been deducted once , then how to explain the Authorities, that beofre 5 yrs this was deducted??

 

 

Replies (1)

TDS needs to be deducted only when the amount is debited to P&L account i.e., when the actual rent invoice is raised, not on the date of security deposit.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details