Being an Individual, payment of rent more than 50,000 per month is liable for deduction of Tax under section 194-IB the rate of 5%. Further in finance act, 2024 it has been reduced to 2% effective from 1st October, 2024.
So I am paying rent of 80,000 per month from July to March and depositing TDS in 26Q at once. Should I deduct TDS with bifurcation i.e 5% from July to September and 2% from October to March or I should deduct 2% on the whole?
Please help.
Thank You.
System is accepting only 2 % TDS for whole the period. Anything paid extra is not consumed.
Even if I pay all amount at once in 26QC I should choose 2% even if some portion of rent is paid before 1st October?
Yes, as the software is designed as such. Technically it doesn't sound correct; but that is the condition as per the system.
If you pay monthly rent , you should cut tds as per the rate , pay & file the return accordingly.
I deducted 5% TDS in Feb 2025 instead of 2% TDS on house rent
Now can I claim the unutilised 3% TDS as advance tax
regards
CAclubindia
