The Economic Times

Paying rent above Rs 50,000? Failure to deduct TDS can make you an assessee in default; know what to do

Tenants paying over Rs 50,000 monthly rent must deduct TDS. This applies to individuals and HUFs not requiring tax audits. The TDS rate is 2% on gross rent. Tax is deducted in the last month of tenancy or financial year. Tenants deposit TDS via Form 26QC and issue Form 16C to landlords. Failure to comply incurs interest and penalties.