Non payment of T.D.S. by the tenant

Ravi khanna (Querist) 09 February 2016 This query is : Resolved
We had let out a commercial property to a partnership firm based in Kolkatta. After staying for 2 years they stopped paying rent and requested us to adjust the same against security deposit since the business was down. They promised to pay TDS and future rent if things improved. But things couldn't improve and the tenant vacated without informing us and did not deposit TDS for the financial year 2012 - 2013. Since it is the responsibility of the tenant and Income Tax deptt. has raised the demand on us how can we recover TDS from tenants to be able to file I.Tax return. We have informed tax authorities at Kolkatta and Delhi but to no avail. Kindlh advise what is the course of action we can take.

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Anirudh (Expert) 09 February 2016
The question is whether you have TDS Certificate in your hand to claim credit of the tax paid? If not, you are liable to pay the tax as due on your income.

It is another matter, and it is for the Income Tax Department to take action against the Tenant for non-deduction of TDS or and for non-deposit of the TDS.

Rajendra K Goyal (Expert) 09 February 2016
If TDS was not deducted / deposited / certificate issued, it was tax payers responsibility to pay tax and show the income in return.

Ravi khanna (Querist) 14 February 2016
Thanks Mr.Anirudh and Mr.Goyal for the prompt replies. It appears that civil suit is the only solution. Thanks.

Guest (Expert) 14 February 2016
Deposit of TDS and revery of arrears of rent are two different entities and cannot be clubbed together.

Deposit of TDS on rent is the responsibility of the tenant. You can claim only deduction certificate of TDS, not the amount of TDS, from the tenant for the purpose of IT Return. However, if he has not deposited the amount of TDS to the IT department, you have to deposit from yourself, as based on the the rental income due from the tenant.

For the purpose of recovery of arrears of rent dues, you can file a suit against the tenant in the court.

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