X Ltd is a company which receives Rs. 300000 as Rent and Rs. 150000 is Advance rent during the F.Y.2012-13. The tennant has deducted TDS on the whole amount of Rs. 4,50,000 @ 10 %. (45,000). As per the agreement the Advance amounting of Rs, 1,50,000 is to be adjusted for the last 6 months of rent payable before vacating the premises. ( if decided to vacate on 31.03.14 the same is to be adjusted from Oct '13 to March' 2014.) However the question arises with regard to whether TDS amounting of Rs. 15000 on Advance can be adjusted while computing the Tax liability for the F.Y. 2012-13 or Not since Rs. 150000 will be kept as a liability till adjusted , can be taken as income in the last 6 months of expiry of the lease period. Kindly suggest.
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Tds on advance rent
Please check the credits in th Form 26AS of X Ltd. If the TDS amount for Rs. 150000 is appearing in the form 26AS for the FY 2012-13, then it will be advisable to adjust TDS amount current year.
if the advance rent is spread over more than one year credit shall be allowed on the basis of proporation in which such income is offered for tax on basis of single tax credit certificate
1)Rental advance is liable for tds under section 194I.
2)show your income as per 26AS and claim tds deducted from your form 16..make sure whether you have obtained form 16a for tds deducted on rent
Thansk & regards
Ganesh babu k
not agree with ganesh babu if advance rent is for only one year then u can claim tds for that year .
if tds is spread over more than one year then you have to show ur rental income in next year and claim tds accordingly
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