The income tax department has been reminding filers about the filing of returns because the last day for filing income tax returns for assessment years 2016-17 and 2017-18 is March 31 – with belated returns – for those who have still not filed them. However, if you are paying a monthly rent over Rs. 50,000 and above, you need to deduct tax from the rent that you pay to your landlord, said the Income Tax Department on its official Twitter account @IncomeTaxIndia. You should deposit the deducted amount in a government account, it added.
Individuals or hindu undivided families which pay rent to Indian residents have to deduct tax from the rent that they pay to the landlords.Read more ↓
How to deposit tax deducted at source (TDS) if you pay a monthly rent over Rs. 50,000:
1) Deduct TDS at 5 per cent of the rent paid for the entire financial year 2017-18, at the time of credit of rent for the month of March, 2018.
2) Deposit and upload details of tax deducted along with correct PAN of the landlord in Form number 26 QC on TIN website (www.tin-nsdl.com) within 30 days from the end of the month in which the deduction is made.
3) The tenant is not required to obtain TAN. TAN stands for tax deduction and collection account number, a 10-digit alphanumeric number allotted to those who are supposed to deduct TDS.
4) Download and issue TDS certificate to landlord in Form no 16C from TRACES website (www.tdscpc.gov.in) within 15 days of uploading Form no 26QC.
Tenants need to deduct TDS from the payable rent because renting a house property qualifies as a source of income and thus, qualifies for tax liability. The other sources of income which qualify for tax liability are 1) salary of an individual 2) income from own business 3) income from capital gains like shares or selling of property 4) income from other sources like interest earned on investments like fixed deposits.
Source by ndtv..Share: