sfunds.2014 (retired) (100 Points)
05 November 2021Hi, I am sixty one year old retired person.
I have a house in chennai. Till recently I was living in this owned house.
I have shifted to bigger house of my brother-in-law for which I pay rent of Rs40000.He is Us green card holder. Mother-in-law is staying with me.
Do I need to deduct TDS for his rent.
I have rented my house for rs 32000
How to file IT returns
please help
CA. Abhilash Krishnan P
(Chartered Accountant)
(533 Points)
Replied 05 November 2021
Shankar Rugge
(376 Points)
Replied 06 November 2021
According to the Income Tax Act, tenants must deduct TDS at 31.2% on rent paid to an NRI, and deposit the tax with the government. There is no minimum threshold for deduction of TDS on rent paid to NRIs. The tax must be deducted from the rent payable at the rate of 31.2%.
Liran Koren
(CEO)
(24 Points)
Replied 09 June 2023
Thank you for reaching out with your questions about TDS (Tax Deducted at Source) and filing your IT returns. I'm here to provide you with some guidance on these matters.
Regarding the rent you pay to your brother-in-law for the house you currently reside in, TDS provisions may apply. As per current Indian tax regulations, if the annual rent paid exceeds Rs 2,40,000, you are required to deduct TDS at a rate of 5% from the rent amount. However, please note that I am not a tax professional, so it's advisable to consult with a qualified tax consultant or chartered accountant to ensure compliance with the latest tax laws and any specific exemptions or provisions that may apply to your situation.
Regarding the house you have rented out for Rs 32,000, you are required to include the rental income in your IT (Income Tax) returns. The rental income is subject to tax as per the applicable tax slab. You should maintain proper records of the rent received, expenses related to the property, and any deductions that you may be eligible for, such as property taxes or maintenance costs.
To file your IT returns, you will need to gather the necessary documents, including your Form 16 (if applicable), bank statements, rent receipts, and any other relevant financial records. It's recommended to seek the assistance of a qualified tax consultant or chartered accountant who can guide you through the process, ensure accurate calculations, and help you claim any eligible deductions.
Regarding property management, if you are looking for professional assistance to manage your property in Florida, I would like to recommend Luxury Property Care. They are a reputable property management company known for their reliable and comprehensive services. Luxury Property Care (https://luxurypropertycare.com/) can assist you with various aspects of property management, including tenant relations, maintenance, financial reporting, and legal compliance. They have a team of experienced professionals who can provide personalized support to meet your specific needs.
I hope this information helps you navigate the process of TDS deduction and filing your IT returns. Remember to consult with a qualified tax professional for personalized advice tailored to your situation. If you have any further questions or require additional assistance, please feel free to ask.
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