An actual situation arose where the tenant incorrectly used a 5% TDS rate under Section 194I instead of the 2% rate under Section 194IB on the rent, leading to a 36,000 discrepancy in the credit shown on the landlord's 26AS. Discover the steps to rectify the issue for both parties involved.

A comprehensive overview of Section 194IB TDS applicable to residential rental payments exceeding ₹50,000. Discusses the reduction in the tax rate from 5% to 2% starting October 2024, provides calculation examples for the fiscal year 2024-25, outlines the payment procedure using Form 26QC, and details the penalties involved.

The Income Tax Department is intensifying its efforts against non-compliance regarding TDS deductions for rental payments that exceed 50,000 per month. Understand Section 194IB, the penalties for failing to deduct, and the procedures to follow when addressing tax notices.

The Income Tax Department is intensifying its efforts against non-compliance regarding TDS deductions for rental payments that exceed 50,000 per month. Understand Section 194IB, the penalties for failing to deduct, and the procedures to follow when addressing tax notices.

This detailed guide outlines the reasons taxpayers are issued HRA scrutiny notices, particularly for claims exceeding 5L. It also covers how to react by verifying claims, settling any unpaid TDS under Section 194IB, modifying ITR, and providing CA certificates to prevent penalties and future audits.

This article discusses the impending modifications to TDS regulations that will take effect in April 2025, particularly highlighting the raised thresholds for FD interest, dividends, and rental income. Discover how these changes can advantage taxpayers and what steps to take in anticipation of the new rule.

Section 80E and HRA are two major tax deductions in India. Section 80E permits deductions for school loan interest, while HRA gives relief for rent payments. This article discusses how these deductions operate, their important characteristics, and how to optimize your tax savings by utilizing both.

This blog includes a thorough TDS rate chart for the fiscal year 2025-26 (assessment year 2026-27). It includes TDS rates for a variety of payments such as wages, interest, rent, professional fees, and more. The site also discusses critical TDS compliance considerations such as PAN requirements, quarterly installments, and penalties for noncompliance. Stay up to speed on the newest TDS rates to guarantee a smooth tax filing experience.

The Indian government has increased the TDS on rent threshold from 2.4 lakh to 6 lakh per annum. This move aims to reduce compliance burdens for tenants, ease cash flow for landlords, and align with rising rental costs. In this blog, we discuss the key changes, benefits, compliance requirements, and the impact on individuals and businesses.

In order to lessen the tax burden on different types of payments, the TDS rates under Sections 194-IB, 194-DA, 194-G, 194-H, 194-M, and 194-O have recently changed. The TDS rate for insurance commissions, life insurance payouts, lottery commissions, brokerage fees, and rent payments will be lowered from 5% to 2% as of October 1, 2024, and April 1, 2025. A 2% tax under Section 194M will also be applied to payments made by non-auditable businesses to contractors and professionals. In addition, Section 194-O will apply a reduced TDS rate of 0.75% to e-commerce transactions. These adjustments aim to increase tax compliance across a range of industries and enhance liquidity for professionals, small enterprises, and individuals.

This blog post explains the recent changes to the Reverse Charge Mechanism (RCM) for property rentals in India. Landlords of commercial properties are now responsible for paying GST on behalf of unregistered tenants. The changes take effect on October 10, 2024. Businesses must update their accounting systems and seek professional advice to ensure compliance.

The Income Tax Department will implement new TDS (Tax Deducted at Source) laws on October 1, 2024, with the goal of reducing tax evasion and enhancing compliance. Raised TDS thresholds for independent contractors, new real estate sales regulations, cash payments, and rent payments to non-resident landlords are some of these modifications. To ensure that taxpayers stay compliant, this blog offers a thorough summary of all the latest regulations and how they affect different transactions.