Tds on rent

CA Gaurav Goyal (CA) (86 Points)

05 September 2014  

Mr. A pays 6 months rent in advance to Mr. B at the starting of half yearly i.e., 1st January 2014 Mr. A pays rent(Rs.10,000/- per month * 6 months = 60,000/-) for Jan to June.This payment method is mentioned in Rent Agreement made between two of them. Mr. A deduct TDS on 1st January(60,000/-*10%=6,000/-) for all the payments (as the payment is earlier than Income booking). Now Mr. B is filing Income Tax Return. How much TDS credit he can claim in the FY in question?(3,000/- or 6,000/-). How much Income must he book for this FY?