A fine of 1 lakh on tenant paying Rs 55 thousand, a small mistake was made in TDS

TDS on Rent: The Income Tax Department has imposed a fine of Rs 1 lakh on the tenant who regularly paying a rent of Rs 55000. According to an ET report, this action was taken on the person because neither TDS was deducted from his fare nor submitted TDS challan and return statement.

It is necessary for the tenant to follow this rule

Taxbuddy.com founder Sujit Bangar told ET that a tenant named Abhishek forgot to deduct TDS while paying Rs 55,000 per month. He further said, under Section 271H of the Income Tax Act, 1961, if a person fails to follow TDS provisions and does not file TDS statement, then a minimum fine of Rs 10,000 can be done which can be increased to Rs 1 lakh. Explain that a person paying more than Rs 50,000 annually will have to deduct 2 percent TDS and after this the tenant will have to fill the form QC and give Form 16C to the landlord.

What does the tenant have to do?

• First of all, cut 2 percent of the fare and fill Form 26QC online.
• After filling Form 26QC, tenants will get Form 16C.
• First go to www.tin-nsdl.com and click on ‘Services’ option. Now ‘TDS on Rent of Property.’ After this, select Form 26QC.
• After coming to Form 26QC, now click on ‘Proceed’.
• Now enter the tenant’s pan, name, address and contact details. Verify from OTP on mobile.
• Enter the landlord’s pan, name and address.
• Property address, rent agreement, total rent and how long have been renting all the information.
• Now enter TDS (2 percent), deduction date and amount.
• Select the payment mode. Select online (net banking/debit card) or offline (bank payment).
• Verify the given details, enter the captcha and click on the submit. Pay online or save for offline.

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