Critical Income Tax Update | New Delhi, India :
If you are paying a monthly rent over Rs 50,000, 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.
How to deposit tax deducted at source (TDS) if you pay a monthly rent over Rs 50,000:
1) Deduct TDS at 5 percent 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.