I think TDS provisions are applicable to "Rent", and not 'Deposits', No TDS on rental deposits.
refundable- Not
non refundable liable but on propotnate basis
Refundable rent deposit is not liable to TDS. No TDS is required to be deducted on refundable deposit of rent.
not applicable
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TDS is applicable only on rent not on deposit.
Originally posted by :Srinivasu |
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| " | rent deposite refundable is liable to tds ple tell me urgent |
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No TDS is deductible if tenant makes refundable deposit with landlord. Further, if such deposit carries interest on such refundable deposit, then TDS is to be deducted and provision of Section 194A will be applicable.
The tax is to be deducted from the actual payment and there is no need of computing notional income in respect of a deposit given to the landlord. If the deposit is adjustable against future rent, the deposit is in the nature of advance rent subject to TDS.
In cases where the tenant makes a non-refundable deposit, tax would have to be deducted at source as such deposit represents the consideration for the use of the land or the building, etc. and therefore partakes the nature of rent as defined in section 194-I. If however the deposit is refundable, no tax would be deductible at source. If the deposit carries interest, the tax to be deducted on the amount of interest will be governed by section 194A.
Refundable deposit- no TDS
Rent dposit is not liable for TDS
Rent dposit is not liable for TDS
TDS is not applicable on refundabale deposits
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