TDS on rent

1) if the tenant is paying rent on building let out for commercial purposes with out deducting TDS, is the land lord liable to pay TDS on the payment received on account of rent. if so, when? or whether this is to be done at the end of the financial year at the time of filing returns?

2) as per the rent agreement, the rent is to be paid before every 10th of the month. penal interest will be charged on the belated payment of rent according to the agreement. in this case, how is the penal interest calculated, ie, on rent amount as per the agreement or on (Rent-TDS), ie, the amount that the landlord will actually receive from the tenant??

Replies (3)

hai mithra

The term TDS itself says Tax Deducted at Source. So the source is at tenant. If the tenant did not deducted tax the receiver is not liable to pay the tax amount. More over the tenant is not allowed for the claiming of the rent as expenditure for non deduction of tax.

2. if the tenant has to pay penalty for non payment of rent before 10th of next month the penalty is calculated on the total rent( not rent - TDS ).

Hi Thomas 

This is shiv charan also engaged in same . I agree with you.

regards

I am sure you will be CA

i am agree with mr. thomas

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