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TDS on office rent

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Ravi

Ca articleship

265 Points Posted on 28 November 2022

Hi All

We have office rent and paying monthly and deducting tax monthly

Feb and March 2022 rent was paid May 2022 and filled the return

now owner is asking to pay tax for Feb and March in FY 2021 to 22

as per my knowledge tax should be deducted at the time of rent payment

can you please assist me on this issue

my owner business nature is Trust

thanks
kumar

Replies (5)

Quick Summary

This discussion addresses a common query regarding Tax Deducted at Source (TDS) on office rent payments. The core issue is when TDS should be deducted, especially when rent for February and March 2022 was paid in May 2022. Experts clarify that TDS is deductible at the time of payment or when the rent becomes due, whichever is earlier. This means the owner's request to account for the tax in the 2021-22 financial year is correct, requiring a revision of the Q4 TDS return.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 28 November 2022

Actually TDS should be deducted when it is paid or due, whichever is earlier.

So, the owner is correct. You need to rectify your Q4 TDS return.

Ravi

Ca articleship

265 Points Posted on 28 November 2022

Thanks sir, Q1 i had already paid and filled return sir if i revised Q4 it will effect on my Q1 current return also, is there any chance to overcome sir without revision

Please help me on this