Quick Answer: Is It Mandatory To Deduct TDS On Rent?

What happens if TDS is not deducted on rent?

The penalty for not deducting TDS and not depositing the tax with the government is 1 per cent and 1.5 per cent, respectively, per month.

“Since the tenant is deducting TDS, the landlord will have to disclose rental income.

If the TDS is not deduced, the landlord cannot take credit and he will have to pay tax..

Do I need to deduct TDS on rent?

TDS has to be deducted if the rent for each month or part of the month is more than Rs 50,000. The payer is required to deduct tax only in the last month of the year or during the last month of tenancy in case the property is vacated during the year.

What is the percentage of TDS on rent?

10%Tax (TDS) Deduction Rates Rent for land/ building/ furniture/ fittings- 10% TDS on the rent amount paid. Individual/ HUF not liable to tax audit – 5% TDS on the rent paid in cases where more than `50,000 is paid per month as rent.

Who pays TDS on rent?

As per Finance Act, 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUFs (Hindu Undivided Family) (other than an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) …

What is the TDS rate?

TDS Rates Applicable for Resident of IndiaTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.20211 5 (w.e.f from 01.06.2017) (If payment of Rent exceeds Rs. 50,000/- per month. ) 101 5 100.75 3.75 7.510 210 27.5 1.510107.510107.522 more rows•Sep 29, 2020