Month of deduction for TDS on Rent when the rent paid exceeds Rs.2,40,000/- for FY2019-20

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Amit N. Jain

Audit & Income Tax Assistant

29 Points Posted on 03 December 2019

Dear Sir/Mam,

Which would be the month of TDS deduction for the rent of Rs.90,000/- per month (paid on monthly basis), starting from April 2019. The rent amount exceeds the threshold limit of Rs.2,40,000/- in the month of June 2019 (i.e. Rs.90000 x 3 months = Rs.2,70,000/-).

Further, if TDS has been correctly deducted but the payment of the same has been not made belatedly. How much would be the interest under Section 201(1) for the delayed payment of TDS & the month from which the interest that would be chargeable on the TDS.

Thanking You.

Regards,

Amit N. Jain

Replies (2)

Kapadia Pravin

10683 Points Posted on 03 December 2019

The TDS deduction is required with every month rent payment or payable when estimated rent payment is likely to exceed threshold 240000/- limit for FY

---- delayed payment-------

A taxpayer who is liable to deduct TDS will be liable to pay interest @ 1% per month from the date when tax is deductible till the date when tax is deducted.

A taxpayer who has deducted tax but not deposited the same to the government is liable to pay interest @ 1.5% per month from the date when tax is deducted to the date of deposit of the TDS.
(Part of the month is considered full month)