Tax: Be diligent in depositing TDS on rent

If you live in rented apartment and pay Rs 50k or more a month, deducting TDS has become obligatory

The Budget has proposed that tenants deduct tax at source or TDS for rent paid to their landlords if the monthly rent they pay is over Rs 50,000. This move will bring many house owners into the tax net, especially those who rely on rent as their primary source of income. It will also ensure that employees submit correct housing rent allowance (HRA) receipts to their employers. The provision will come into effect from June 1, 2017.
 
The TDS requirement does exist at present but only for individuals and Hindu Undivided Families (HUFs) who need to get their books