When is tds deducted on rent

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Frequently Asked Questions. Is TDS deducted on the security deposit of rent? Will TDS be deducted from the service tax added to the rent? What if I pay to deduct or deposit the TDS? Income Tax Guides. Posted on 15 Jun, Anjana Dhand See all articles by Anjana Dhand.

Subscribe Your privacy is important to us. Personal Finance News. Mutual Funds. Rate Story. Font Size Abc Small. Abc Medium. Abc Large. ThinkStock Photos You have to pay tax online via a challan-cum-payment form within 30 days from the end of the month in which the tax is deducted. Your legal guide on estate planning, inheritance, will and more. Under the lens NFRA member under lens for audit gaps in fraud-hit firm; cloud over selection process for regulatory posts. Subscribe to ETPrime. Browse Companies:.

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Your Reason has been Reported to the admin. Fill in your details: Will be displayed Will not be displayed Will be displayed. Share this Comment: Post to Twitter. Already an ET Prime Member? Sign In now. An HUF arises from status and is neither the creation of law nor of a contract. An HUF is automatically formed when two people get married and start their family. Apart from Hindus, Sikhs, Buddhists, Jains, etc.

In order to bring more taxpayers into the tax net, the government has expanded the scope of the tax deduction at source on rent paid. This will cover all individuals and HUF, which are not covered under the existing provisions as explained above. 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.

However, in case the rent is paid earlier, you are required to deduct tax at the earlier moment. So, with the new provisions, even the people who are salaried or retired and not carrying on any business or profession but are paying rent above Rs 50, per month, will have to deduct tax at source from such rental. This will bring those people into the tax net, who are earning rent by letting out the property to people who are not engaged in any business or profession.

Since the rent for this purpose includes any payment for use of building, this will even cover the rent paid by you to hotels for room bookings, or even to marriage halls, in case the rent for use of such premises exceeds Rs 50, even for one day. If the tenant fails to deduct TDS on the rent paid to the NRI, the payer is liable to pay penalty as per the prevailing provisions. The provisions only cover the recipient of rent who is a resident for income tax purposes, as non-residents are already covered under section of Income Tax Act.

Even though the existing provision requires people to obtain the TAN number, the new provision exempts the payers from such requirement. To pay TDS on rent, log on to www. On the website, you will find the link to fill Form 26QC. Fill all your details, the details pertaining to your landlord and all the details of the financial transaction.

In case you are sharing the accommodation, their details must also be furnished. Similarly, if your landlord co-owns the property with someone else, their details must also be given in the form. Section IC covers joint development agreements. Rent refers to any payment made for the use of land, building or land and building, or payments made to hotels for providing rooms.