Wednesday, April 16, 2025

Paying rent above ₹50,000/month? A must-know tax rule!

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If you're paying more than ₹50,000 per month as rent to your landlord (whether you're a salaried individual or not), the Income Tax Department expects you to deduct TDS (Tax Deducted at Source) under Section 194IB.


🔹 TDS @ 5% needs to be deducted from the total annual rent.

🔹 This must be deposited with the government using Form 26QC.

🔹 You also need to issue Form 16C to your landlord.


👉 Failure to do so? You may be treated as an assessee in default—which could lead to penalties and interest.


💡 Even if you're not a business owner or salaried person, this rule applies if your rent exceeds ₹50,000/month.


✅ Stay compliant. Avoid unwanted surprises from the tax department.

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