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TDS by tenant

16 June 2025

My tenant did not deposit the TDS on rent for FY 2024-25. I have been writing about it since December 2024 and I was assured that it would be taken care of. Yet, I find from 26AS and AIS that TDS for just two months in Q4 has been deposited. What is the recourse available to me? If the issue is not resolved before the due date for filing my IT return, how do I account for the TDS not deposited?

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8196 Points)
Replied 16 June 2025

Given your situation, here's what you can do:

Recourse Available - *Send a formal notice*: Inform your tenant in writing about the non-deduction of TDS and request immediate deposit. -

*Calculate interest and penalties*: Determine the interest and penalties applicable for late deduction and deposit of TDS. -

*File a complaint*: If your tenant still doesn't comply, you can file a complaint with the Income Tax Department.¹ Accounting for TDS Not Deposited -

*Claim TDS credit*: You can claim credit for the TDS amount deducted but not deposited by your tenant. However, you'll need to provide documentation to support your claim. -

*Report income accurately*: Ensure you report your rental income accurately in your IT return, considering the TDS amount deducted but not deposited. Filing IT Return -

*Report TDS correctly*: When filing your IT return, report the TDS amount deducted and deposited correctly. If there's a discrepancy, provide an explanation. -

*Claim refund or pay tax*: If you've paid more tax than required, claim a refund. If you've paid less, pay the due tax amount. Important Dates -

*Due date for filing IT return*: Ensure you file your IT return before the due date to avoid penalties and interest.

- *TDS deposit deadline*: Verify the deadline for depositing TDS and ensure your tenant complies.²

Additional Considerations - *Section 194-IB*: As your tenant is liable to deduct TDS under Section 194-IB, ensure they comply with the provisions. -

*TDS rates*: Verify the applicable TDS rates for FY 2024-25, considering the change in rates from 5% to 2% effective October 1, 2024.³