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The Income Tax Department has released a new brochure explaining Section 194-IB which relates to obligations of a tenant to pay Tax Deducted at Source (TDS) by deducting it from house rent.
The Central Government hereby specifies that no deduction of tax shall be made under section 194EE of the Act on payment of amount referred to in clause (a) of sub-section (2) of section 80CCA, which is withdrawn by an assessee being an individual, on or after the date of publication of notification no. 27/2025 dated 04.04.2025
Handbook on TDS and TCS, latest edition of 2025
The Income Tax Department has released a new brochure outlining Tax Deducted at Source (TDS) payment responsibilities for individual taxpayers. It specifically highlights TDS obligations related to property purchases, excluding agricultural land, and house rent payments exceeding a specified threshold.
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has introduced major revisions to the tax deducted at source (TDS) rules, aimed at providing financial relief to taxpayers, especially senior citizens, investors, and commission earners. Here’s a breakdown of the key changes effective from April 1, 2025.
The taxation issues for directors significantly differs from that applicable to professionals or non-executive directors who are earning income under “Profits and Gains from Business and Profession” and executive directors who are earning income under salary
Taxpayers take note! The Income tax department plans to initiate a countrywide action against defaulters who have not deposited their TDS/TCS, according to officials. Based on tax deductions in FY 22-23 and FY 23-24, nearly 40,000 taxpayers are being investigated.
Budget 2025 has increased the threshold limit to deduct TDS on house rent paid by non-individuals like companies, etc. Now TDS on house rent paid has to be deducted from the rent payment if the rent payment is Rs 50,000 per month or part of a month or more. Earlier this threshold was if the rent payment exceeded Rs 2.4 lakh per annum. This threshold limit was Rs 1,80,000 until FY 2018-19. This amendment will take effect from April 1, 2025.
Author CA Aman Rajput, presented the TDS rate chart for FY 2024-25; AY 2025-26 in the table below.
All about New TDS Section 194T coming into effect from 01.04.2025
