Tax filing on rent

I have given a commercial building on rent ( for vehicle service). On 01/12/2020 While making an agreement the client had given me an advance of Rs.10 lakhs which is agreed to deduct Rs.10000 each from monthly rent for 100 months. TDS @ 7.5%, ie Rs.75000 was deducted and paid to TDS department in my PAN. 

Actual rent-                           33,000 per month

Advance rent deducted-  (-) 10,000

Less TDS @ 7.5%             (-) 1725

Amount credited to Bank      21275

While filing ITR for FY 2020-21, In  26AS the total TDS deducted was Rs.81900(Rs.75000+ 1725*4) against amount credited Rs.1092000.

Will the rent advance Rs.10 lakhs will be treated as income in FY 2020-21 itself . If not, how much amount is need to show as rental income in Fy 2020-21. 

Can I Claim entire TDS credit in this FY. 

Kindly help

Replies (3)
Quick Summary
This discussion clarifies the tax implications of receiving advance rent for a commercial property. It explains that advance rent is generally considered taxable income in the year it's received, even if it's deducted over time. The user also inquires about claiming the full TDS credit and how much rental income to declare for the relevant financial year.

The amount paid as rent and tds deducted can be claimed.

Advance rent is taxable in the year of receipt being earlier than due thus taxable.

Yes, rent received in advance is income at the time of receipt, and therefore subject to both TDS and income tax.

However if it's a fully returnable security deposit, then no TDS and not subject to income tax.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details