In the recent few days, Income Tax Department has been reminding of certain rules as well as benefits to all the citizens as the last day to file the Income Tax Returns for the year 2016-17 and 2018-19 is on March 31st, 2018. Income Tax Department is reminding all the citizens to pay Income Tax via different mediums. Here we will provide details about Income Tax Filing: Need to Deduct TDS for Rent Over Rs 50000.
Income Tax Filing: Need to Deduct TDS for Rent Over Rs 50,000
If you are currently paying Rent of Rs 50,000 or above, then you need to deduct tax from the rent that you pay to the landlord, said by Income Tax Department in micro-blogging site Twitter. Here, you have to deposit the deducted amount in a Government account, it added. All the Individuals or Hindu Undivided Families which pay rent to the Indian resident have to deduct tax from the rent which they pay to their landlords.
How to deposit Tax Deducted at source (TDS) if you pay monthly rent over Rs 50.000?
1. Deduct TDS for the total amount of rent which you have paid for the whole financial year 2017-18, at the time of credit for the month of March 2018.
2. Now, you have to Deposit and Upload details of tax deducted along with the correct PAN of the landlord in the Form number 26 QC on TIN website within 30 days from end of the month in which deduction is made.
3. The tenant doesn’t need TAN. TAN refers to the Tax deduction and collection number, a 10-Digit Alpha Numeric Number which is provided to those you want to deduct TDS.
4. Download and then issue TDS Certificate to the landlord in Form no 16C from TRACES website within a time period of 15 days of uploading Form no 26QC.
Here, Tenants need to deduct TDS from the payable rent as renting a house property qualifies as a source of Income which then qualifies for tax liability.
Various sources of Income will fall under the tax liability include
1. Salary of an Individual
2. Income obtained from Own Business
3. Income which is obtained from Capital gains such as sales or selling of property.
4. Income obtained from various other sources such as Investments made in Fixed Deposits.
Thus, all the candidates who are paying rent of Rs 50,000 or more can deduct TDS of 5% or more on their rent.