Hello Everyone,
We are a company moving from the current facility to new facility . We have given the landlord 3 months notice. We have good amount of advance amount with the land lord at the end of 3 months which is recoverable.
My question is whether we have to pay the TDS for the 3 months and adjust against the receivable or we dont' need to pay TDS as we are not paying the land lord the 3 months rent.
Please clarify
Thanks,
Sudheer
Please refer circular No. 715 dated 8-8-1995.
Question 22 : Whether the rent paid should be enhanced for notional income in respect of deposit given to the landlord ?
Answer : The tax is to be deducted from 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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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