Rent greater than 50000 and 5% deduction

Income Tax
1

Hi

I am paying rent 55000 pm and recently i cam across article where i have to deduct 1% TDS on it. Where shall i deposit this TDS and do i have to pay rent 55000 to owner and additional pay 1% TDS or shall I deduct 550 and pay remaining rent

2

Hi @Vaibhav_Gupta
If the rent payment is greater than 50,000 per month then TDS has to be deducted @5% of total rent paid. Moreover this is not over and above rent payment i.e., you have to deduct TDS (5%) and pay the remaining (95%) to the landlord. Hope this clarifies!

Thanks

3

Thanks a lot for clarifying Pulkit. Would it be possible to guide on how can i make same payment ?

4

@Vaibhav_Gupta you have to make its payment as provided in section 194IB of the Income tax act. Need to get the details of landlord PAN, Aadhar, Rent amount paid, etc, to get complied, payment of the rent TDS amount deducted should be paid through return-cum-challan statement within due dates specified.

5

Sure @Vaibhav_Gupta Please connect with me on instagram @fintaxsnippets