This blog post offers a clear comparison of four important TDS sections related to property and rental income in India: 194I, 194-IA, 194-IB, and 194-IC. It explains each section's nature of payment, payer, payee, threshold limits, TDS rates (including recent changes for 194-IB and 194I for FY 2025-26), time of deduction, required forms, and TAN requirements. The post also discusses the connections between these sections, compliance issues, and best practices for individuals, businesses, and developers to manage the TDS landscape effectively and avoid penalties.

This blog post provides a comprehensive guide for individuals and HUFs paying monthly rent above 50,000, highlighting their often-overlooked TDS obligations under Section 194-IB of the Income Tax Act. It details who is applicable, the current TDS rate (2% from Oct 2024, 5% earlier), deduction and deposit timelines (annual deduction, 30 days for deposit), and the use of Form 26QC and Form 16C. Crucially, the post emphasizes the severe consequences of non-compliance, including various interest charges, late filing fees (up to 200/day), substantial penalties (10,000-1,00,000), and even potential prosecution. It also offers actionable steps for compliance and guidance for those who have missed previous deductions, urging tenants to prioritize this crucial tax duty to avoid significant financial and legal repercussions.

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 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.