https://www.taxtmi.com/article/detailed?id=1541 Refundable and adjustable deposits from tenants are not income when received but are assets of the tenant and liabilities of the owner; TDS under section 194I applies to income by way of rent and should be deducted when rent actually accrues or when an adjustment converts deposit into rent. Circulars distinguish non refundable consideration (subject to TDS) from refundable deposits, but inconsistent guidance has at times suggested deduction on adjustable advances, causing timing mismatches and administrative difficulties; withholding should therefore follow accrual or adjustment to reflect true taxable income. en-us Mon, 19 Dec 2011 07:14:45 +0530 Mon, 19 Dec 2011 07:14:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1541 Refundable and adjustable deposits from tenants are not income when received but are assets of the tenant and liabilities of the owner; TDS under section 194I applies to income by way of rent and should be deducted when rent actually accrues or when an adjustment converts deposit into rent. Circulars distinguish non refundable consideration (subject to TDS) from refundable deposits, but inconsistent guidance has at times suggested deduction on adjustable advances, causing timing mismatches and administrative difficulties; withholding should therefore follow accrual or adjustment to reflect true taxable income. Articles Income Tax Mon, 19 Dec 2011 07:14:45 +0530 https://www.taxtmi.com/article/detailed?id=1541