Paying monthly rent over Rs. 50,000?

Deduct TDS of 5 percent

and deposit to government account in 3 easy steps

1. Deduct TDS @ 5% 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 & Upload details of Tax deducted along with correct PAN of the Landlord In Form No. 26QC on TIN website (www.tin-nsdl.com) within 30 days from the end of the month in which the deduction is made. (The tenant is not required to obtain TAN)

3. Download & Issue TDS certificate to landlord in Form No. 16C from TRACES website (www.tdscpc.gov.in) within 15 days of uploading Form No. 26QC.

(*Except those liable to audit under clause {a} and (b} of section 44AB of the I.T Act, 1961)

Detailed procedure, list of Bank branches Authorised to accept TDS and Frequently Asked Questions (FAQs) are available on website www.tin-nsdl.com for reference.

Paying monthly rent over Rs. 50,000

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4 responses to “Advisory for those Paying monthly rent over 50,000?”

  1. Hemendra Kumar Varshney says:

    The Govt. had to take such steps as people are misusing the Rent as expense and exemption. Lot of LLs demand rent only in cash and not paying taxes and at the same time employees claiming HRA on Bogus receipts as LLs do not share PAN or give receipt for the rent collected. It is worth noting and appreciating, the things can move to simplification if people are honest. You might have read in news in last one year, the Anuual Income Returns which are paperless and with out proof being asked, is based on trust of honesty by Government on individuals declaration. However, this is being misused by unscruplous elements in securing undue refund of taxes from Authorities. So it is not worth blaming for the compliance of law.

  2. Deepk Soni says:

    GREED OF THE GOVERNMENT TO COLLECT THE TAXES BY ALL THE MEANS,FAIR OR UNFAIR,HAS CREATED UNPRECEDENTED HARDSHIPS FOR MANY TENANTS.THE GOVERNMENT HAS MISERABLY INCREASED THE CLERICAL WORK .THE TALENT OF THE NATION IS BEING WASTED ON FULFILLING THE FORMS AND UPLOADING THE DATA.

    • bspai says:

      This requirement is only for those who pay rent above Rs. 50,000/-. Surely, not many pay such high rent and one who can pay such high rent is not “aam admi”.
      Besides Govt. intention appears to only track maybe those individuals or non-corporates who may not declare such receipts in their tax returns.
      Even the tax payment / TDS cert. issuing process appears to be simple for an educated person occupying a reasonably high position.

  3. Sukhjinder Singh Bawa says:

    as per section 194-I TDS on rent shall be charged @10% in case of building /land or 2% in case of machinery then why 5% Should be deducted

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