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??
CAclubindia
