TDS not dedcuted by Tenant for commercial property

The liability to deduct and deposit TDS, if applicable, is on the tenant and not on the landlord. The landlord should not deposit TDS using the tenant’s TAN. If the tenant was liable to deduct TDS and failed to do so due to delay in obtaining TAN, the tenant may have to regularize the default with applicable interest/late fee and issue Form 16A.

For the landlord, the correct approach is to disclose the full rent received/receivable in the ITR under “Income from House Property” and claim eligible deductions such as municipal taxes paid, 30% standard deduction under Section 24(a), and housing loan interest, if applicable. Non-deduction of TDS by the tenant does not change the taxability of rental income in the landlord’s hands.