TDS on rent

we have a hotel which is taken on rent. 

there are three owners to whom we have to pay rent. 

as per agreement rent is payable quarterly but the actual payments are delayed and have not been paid 
within the financial year end i.e March 2016. 

for example purpose only one owners details are given below.

financial year- 2015-16

owner - A

total rent payable- Rs. 510000/- ( 8500/- per room for 5 rooms for 12 months )
total rent paid- Rs 459000/- ( after provision for tds of rs 51000/- )
rent paid dates are as follows - ( all payments are made through cheque or neft )
28.12.2015- Rs 140000.00
04.03.2016- Rs 204250.00
20.05.2016- Rs 114750.00

Total...... Rs 459000.00 

Questions :

1. Althrough provision for tds is made and amount deducted, tds amount still not deposited due to delay in submission of application for TAN no.On receipt of TAN,it is found that the name of hotel is misspelled on the TAN allocation letter , hence again applied for rectification. After receipt of TAN , can we deposit the tds amount and issue tds certificate to the land owners for the financial year 2015-16. ( payments are made in financial year 2016-17 )

2. can we file the tds return and if yes, what is the penalty applicable, is the penalty avoidable or any technical there in the act ?

3. from when interest is to be paid and at what rate for the delay deposit of tds ?

Rajani Kanta Sahu.           

Asked 1 year ago in Income Tax from Puri, Odisha
Hi Rajani Kant,
As you are aware
Any person who is not an Individual or HUF, who is paying any income to resident by way of rent is liable to deduct tax at source only in case the aggregate of the amount of such rent credited or paid or likely to credited or paid during the financial year by the aforesaid person to the account of, or to payee exceeds Rs. 1,80,000/-. 
In this, ‘Rent’ means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of either separately or together).
1) yes, you shall deposit TDS amount with interest on late depositing of TDS amount for Financial 2015-16, and issue TDS certificate to the owner.
2) Yes, you can file TDS return, along with late filing fees under section 234E,
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.  given are the dates for return filing:
Return Filing for Quarter  Due date for filing Return
30/6/2015                                    31/07/2015
30/09/2015                                  31/10/2015
31/12/2015                                  31/01/2016
31/03/2016                                  15/05/2016
30/6/2016                                     31/07/2016
there is also penalty under section 271H,  As per section 271 H, where a person fails to file the statement of tax deducted/collect at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then assessing officer may direct such person to pay penalty under section 271H. Minimum penalty can be levied of Rs. 10,000 which can go upto Rs. 1,00,000. Penalty under section 271H will be in addition to late filing fees prescribed under section 234E.

3)Interest will be levied at 1% for every month or part of a month for delay in deduction of tax and at 1.5% for every month or part of a month for delay in remittance of tax after deduction. . As per section 201(1A), interest for delay in payment of TDS should be paid before filing the TDS return.
Vishakha Agarwal
CA, Bangalore
429 Answers
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  Talk to Vishakha Agarwal
Dear sir

Please find the response below.

1. The moment total gross billing in a year exceeds Rs. 9 lacs, you are liable to take registration and you are liable to pay service tax when your gross billing crosses 10 lacs

2. Liability will arise as above.

3. Yes, if you want to avail the deduction of this expenditure, you should ask for bill. should bill each and every guest.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar

Abhishek Dugar
CA, Mumbai
2653 Answers
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  Talk to Abhishek Dugar
Sorry I think your question is already answered
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
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  Talk to Shyam Sunder Modani

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