TDS on rent on net or gross amount

1635 views 1 replies
XYZ Co. is paying a rent for its office premises to ABC Ltd.Rs. 4,00,000

ABC Ltd had taken deposit from XYZ Co. and interest paid amounting to Rs. 2,00,000

AT the month end ABC Ltd. raise a note for an amount of Rs. 4,00,000 towards rent of the premises and in the same note it also shown an interest amount Rs. 2,00,000 of deposit and raise a net amount of Rs. 2,00,000

Now, XYZ Co paid an amount Rs. 2,00,000 after deducting TDS on rent on amount of Rs.2,00,000

now a question is
is XYZ Co has to deduct TDS on Rs. 4,00,000 or Rs. 2,00,000 ?

on which amount XYZ Co. has to book expense account i.e. Rs. 2,00,000 directly debited or Rs.4,00,000 debit towards rent and Rs. 2,00,000 credit towards interest ?

give reply after reading question properly.

Replies (1)
HI Chintanshah,

XYZ &Co will book rent of rs. 400000 and deduct TDS thereon.

And Rs. 200000 will be shown as interest income separately.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details