Have you also received this message from Income Tax Department?
A notice has been issued by the Income Tax Department to those taxpayers who pay rent of Rs 50,000 or more every month and who have not deducted TDS at source while paying rent to the landlord. The Income Tax Department has sent notices to many taxpayers regarding the assessment years 2023-2024 and 2024-2025. It states that you have claimed for house Rent Allowance (HRA) during this period, but did not deduct TDS on it.
The tenant is responsible for deducting this percentage of TDS
All india Taxpayers Association President abhishek Murali told the media that if you want to reduce your claim and file an updated return, then this is the right time.
He said, "If you are living as a tenant in a house and paying rent of Rs 50,000 or more every month, then according to the Income Tax Act, as a tenant, you have to deduct two percent (effective from october 2024, earlier it was five percent) TDS on the rent paid to the landlord. Therefore, the responsibility of deducting TDS lies with the tenant. The tenant has to deduct TDS and deposit it to the Income Tax Department and give the remaining money to the landlord."
What will happen if TDS is not deducted?
He said, "If a tenant does not do this, then he will be considered a default taxpayer. In such a situation, interest, fine or penalty can be imposed on you by the department. It is different in different cases. It also depends on how long you have not deducted TDS. Usually it can be from one to 1.5 percent per month." abhishek Murali also mentioned tax exemption on this. He said, "If the landlord has filed income tax returns and shown the rental income and has also paid the tax, then this situation will not be considered as a default and no interest or penalty will have to be paid."
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