Tds

TDS 656 views 4 replies

is tds applicable on interest paid to landlord for delayed payment?

Replies (4)

 I think tds should be deducted

interest is additional rent increased for delayed payment ......so treatment should be same as rent. 

mr sharma,

please clearify ,

m not arguing with you,just asking that

TDS should be accounted on the date of due or payment which ever is earlier

as in above case

if TDS entry was passed on date of accrual of rent

then whether one more entry is to be passed on interest accrued on delayed rent.?

and in TDS return, whether the whole amount (rent+interst) as rent 

Originally posted by : aaditendra

mr sharma,

please clearify ,

m not arguing with you,just asking that

TDS should be accounted on the date of due or payment which ever is earlier

as in above case

if TDS entry was passed on date of accrual of rent

then whether one more entry is to be passed on interest accrued on delayed rent.?

and in TDS return, whether the whole amount (rent+interst) as rent 

usually the rent is accounted on the date of payment except year end, as like other utility bills viz telephone , electric ity, security etc. and TDS is deducted on that very day only. 

if any interest is paid for delay payment in rent, then its not a matter of days but for longer periods, so one can not judge the quantam of interest accured unless the actual payment is made / notified by the landlord, so the book entry of interest accured does not appear unless its billed / claimed by the landlord ( unless otherwise interest is in written agreement and maintained by both landlord and tenant both).

any sum paid to landlord would go in rent account usually, so is the interest. 


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