TDS ON COMPENSATION CHARGES RECEIVED ON RENTED PROPERTY

 

Q. If the owner of the party has made the agreement with the tenant for 9 years and the lock in period is 3 years but the tenant has use the property only for one year and for one year rent has also been paid and TDS also deducted  and the tenant is vacate the property after one year and tenant is paying the compensation charges for not using the property remaining two years in that case the TDS will be applicable on Compensation charges or not and if it is applicable under which section please advice to me .
Replies (1)

Mr. Gopal Kumar Agarwal

In your case the provisions of section 23(1)(b) applies.  The amount received as a compensations is the annual value of the house property.  If the impugned amount of compensation together with regular rent falls under the ambit of section 194I, tax has to be deducted accordingly.

Best Wishes

Sathikonda

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details