EDC Charges to HUDA Are Not Rent, No TDS Required: Delhi HC

CIT (TDS)-2 Vs SS Group Pvt. Ltd (Delhi High Court) The Delhi High Court, in the case of CIT (TDS)-2 Vs SS Group Pvt. Ltd., dismissed the Revenue’s appeal, affirming that External Development Charges (EDC) paid by a real estate developer to the Haryana Urban Development Authority (HUDA) are not “rent” and do not attract the obligation to deduct Tax Deducted at Source (TDS) under Section 194−I of the Income Tax Act, 1961. The developer, SS Group Pvt. Ltd., was initially held to be an assessee in default by the Assessing Officer (AO) for failing to deduct tax on EDC payments...