Tds on rent during the notice period

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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

Replies (1)

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.

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