Quick Summary
The Income Tax Department has issued notices to taxpayers who have been paying monthly rent of Rs 50,000 or more but failed to deduct Tax Deducted at Source (TDS) before remitting the amount to their landlords, a tax expert revealed. Why Are Tenants Receiving Notices? According to tax laws, tenants paying rent of Rs 50,000 or more per month must deduct TDS at 2% (effective from October 2024, earlier 5%) and deposit it with the Income Tax Department. However, several taxpayers failed to comp
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 011-411-70713
FAQ :
Tenants are receiving notices because they have been paying monthly rent of £50,000 or more but have failed to deduct the mandatory Tax Deducted at Source (TDS) before paying their landlords.
From October 2024, the TDS rate for rent payments of £50,000 or more per month is 2%. Previously, it was 5%.
Failure to deduct TDS can result in being treated as an 'assessee in default', incurring interest penalties of 1-1.5% per month, and facing additional fines from tax authorities.
Yes, tenants can avoid penalties if their landlord has already declared the rental income in their Income Tax Return and paid the applicable taxes on it.
Affected tenants can file an updated income tax return to adjust their House Rent Allowance (HRA) claim and rectify the non-compliance before penalties are imposed.
The minimum monthly rent that triggers the TDS requirement is £50,000.
CAclubindia
