Missed TDS on rental for previous 3 years

Prakash Kandavel (8 Points)

25 March 2025  

Got this notice from compliance and all the 3 amounts X, Y, and Z are above the prescribed 50000 per month rent. 

It is observed that you have claimed an exemption for HRA under section 10(13A) amounting to Rs. X/-, Rs. Y/- and Rs. Z/- in your ITR for A.Y. 2022-23, A.Y. 2023-24 and A.Y. 2024-25 respectively. However, it appears that no TDS has been deducted on the rent paid as required under the TDS provisions u/s 194-IB. We kindly request that you verify this claim and rectify any mistakes by filing an updated ITR by 31.03.2025.

This was not intentional and missed more out of ignorance due to the fact that landlord is showing full rent in his income and paying tax correctly. I have his tax filing acknowledgements. 

 

Few questions - 

  1. Should I still pay the TDS for past years?
  2. Since the landlord has already paid tax for previous years will he be able to claim this TDS as credit?
  3. What are the interest and penalty rules for the complete miss of TDS?

Thanks.