The Revenue Tax Division is now reportedly sending notices to salaried taxpayers who’ve claimed Home Lease Allowance (HRA), however didn’t deduct tax at supply (TDS) on lease funds up to now monetary years.
These notices are to ask the taxpayers to confirm their claims and if they’re incorrect, to amend their tax returns earlier than the March 31 deadline.(Representational Picture/Pixabay)
These notices are to ask the taxpayers to confirm their claims and if they’re incorrect, to amend their tax returns earlier than the March 31 deadline, in accordance with a Mint report.
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What you are able to do
The legislation states that tenants should deduct 2 per cent TDS (which was lowered from 5 per cent in October 2024) if their month-to-month lease exceeds ₹50,000, so long as the owner is a resident Indian.
In instances the place the owner is a non-resident Indian (NRI), the TDS charge is 31.2 per cent, whatever the lease quantity.
Nevertheless, “those that have claimed real HRA don’t have to file an up to date return,” the report quoted Bhawna Kakkar, founding father of Kakkar & Firm, Chartered Accountants, as saying.
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A 1 per cent month-to-month curiosity will get charged for not deducting TDS, whereas not depositing TDS results in a better 1.5 per cent month-to-month curiosity. FOr dealys in submitting e-TDS, ₹200 per day is the late submitting price, although the higher restrict may be equal to the TDS quantity, in accordance with the report.
Receiving a discover implies that the division considers you a defaulter below Part 201.
Nevertheless, assessees may give the owner’s tax return as proof that the lease was declared as earnings and taxes had been duly paid. Assessees must also file Type 26A and procure a CA certificates confirming that the owner has reported the rental earnings and paid the taxes, in accordance with the report.
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The earnings tax division is doing this as a result of faux HRA claims being on the rise, as per the report.