Hey @manpreet ,
As per the laws, if you have paid less than ₹50,000/month to each co-owner of the property then the section 194IB for TDS on rent paid is not applicable to you.
These emails have been sent to all individuals who have claimed HRA indicating that there rent paid per month is more than ₹50,000. Therefore if section 194IB does not apply to you then you do not need to take any action.
If you further receive any query on the same then you can respond to that as per section 194IB.
Hi @Sakshi_Jain ,
Few follow-up questions on top of the @Siva_Venkat 's query:
Hi,
While I have not deducted TDS but my landlord has filed their taxes and shown the rental and paid applicable taxes on it - What happens then?
Is there a process that I still need to do or am I in full compliance with Income Tax?
Hey @Praabhav
As per the income tax act, you have to deduct TDS at 5% (2% for F.Y. 2024-25) of rent amount if the amount exceeds 50k per month.
Here, the ITD have sent an email to all taxpayers who have shown rent paid more than 50k and claimed HRA but not filed TDS return.
In our opinion, we recommend you either of the 2 options below:
File TDS return with interest and penalty. (Interest is 1.5% of TDS amount per month and penalty is 200/ day (penalty will be maximum upto the amount of TDS deducted).
Wait for the ITD to send a formal IT Notice and then you can file TDS return. Since you have paid the rent and your landlord have disclosed the income in ITR, there is no loss of revenue to the government.
Hope this helps!
Hey @Vikas_Joshi1 ,
Let me answer these questions one by one:
If you are not in touch with the landlord then you need to pay the TDS, interest and late filing fees yourself.
If the landlord agrees, then you can ask the landlord to give the TDS amount and the landlord will be able to claim the TDS amount by filing a rectification for that year and claim the credit/refund for the same. The interest and late filing fees will be paid by the tenant himself.
If you decide not to respond to this email, you can wait for the ITD to communicate further and if a notice is served then you can respond to the same as per your situation.
Hello, isn’t there a 3rd option in the form of 26A? If the landlord has already shown the rent in their income and paid tax on it, we should be able to file form 26a? Do we need to obtain a TAN number for it?
how and where can i change assesment year for paying past years TDS And penalty
Hey @Prachi_K ,
While filing form 26QB, you will be adding the date of payment/credited. This will decide for which assessment year you are filing the form.
Hope this clears your query!
Hey @Rohit_Gupta ,
Can you please clarify which form are you asking about?
In case you are asking about filing ‘form 26QC - TDS on rent payments’, then you do not need to obtain a TAN for the same. This can be filed by logging in to your income tax portal using your PAN.
If the landlord has already filed his ITR and if you want to deduct the TDS now to stay complaint, you can do so and ask the landlord to file a rectification of his ITR and claim the TDS credit.
Hi @Sakshi_Jain,
I wanted a clarity on the point “If the landlord agrees, then you can ask the landlord to give the TDS amount and the landlord will be able to claim the TDS amount by filing a rectification for that year and claim the credit/refund for the same.”
Is it really possible for the landlord to claim the TDS through rectification?
As per my knowledge,
You cannot submit a rectification return for the following activities.
Kindly clarify on this matter.
Hey @Chandni ,
While filing the rectification return, the Gross total income can’t be changed. But you can add the details of TDS payment using the Offline option.
If the rent income was declared while filing the original return, then the landlord can claim the TDS credit as a refund by filing the rectification under the “Return data correction (offline)”.
Hope this helps!
Hi @Sakshi_Jain @AkashJhaveri I paid the TDS amount via challan without penality and late fee and got a message: defaults have been identified - However, i haven’t received any emails for the same.
in this case do I need to wait until i get the detailed email ? or can i just file another challan ?
Hello @sameercourse
You can log in to the TRACES portal and view the default summary, where the interest and penalty amounts will be displayed. Once reviewed, you can proceed to pay the demand through the Income Tax portal.
Hope this helps!
Hi @Swapnil_Agarwal Thanks for the response. At the time of filing a rectification from landlords account to get the refund - I got an error:
“The rectification request being sought to be filed cannot be considered by CPC - you may approach your AO with an application for rectification u/s 154 of the act”
Just wondering if there are any other workarounds online instead of chasing with the offline team - usually they never respond/assist with any requests. Kindly let me know if you can help on this rectification request.
Thanks & Regards,
Hey @sameercourse
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