Hello
There are three alternatives here:
1. You can ask the owner to pay you back the money but legally, the owner has no such obligation to give it back. If he gives it back, you have to deposit the same to the government, alongwith the interest rate (1.5% p.m). In this way, your client will have to bear only the interest portion alone.
2.You have to deposit the TDS from your account, and pay the same alongwith interest. The same maybe recovered from the owner of the property in the subsequent installments.
3. Do the same as per Mr Tarun has suggested
In all these cases, interest will be chargeable at the rate of 1.5% per month or a part of the month.
Regards
KP
Alternatively, since amount paid does not exceed threshold limit, u can deduct TDS (from apr to july) in july itself and show it in the Q2 returns. In this case, interest is not applicable. But this is debatable.
Ashish, I have to ask you if he is paying rent for business or personal purposes and whether audit is applicable to him. Coz the provisions are as under:
"The person (not being an Individual or HUF) who is responsible for paying any income
to resident by way of rent is liable to deduct tax at source in case the aggregate of the
amount of such income credited or paid or likely to be credited or paid during the
financial year by the aforesaid person to the account of, or to payee exceeds Rs.
1,80,000/-. Individuals and /or HUFs who are subject to tax audit are also under an
obligation to deduct the tax at source. "
So, sec 194I may just not be applicable in his case.
In this case, you are liable to deduct TDS hence forth and also for the period you missed from the next payment. Total remittance to the dept. will be for TDS(old+interest) + Present tds.
Anil, he cannot postpone tds till Jan 2016 as the provisions state "if rent paid/credited exceeds or Likely to exceed 1.8L in the year"..
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