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TDS on Rent Payment_ How to Calculate and Deduct Tax on Rent Paid_ - Google Docs

Are you paying rent and want to know how to calculate and deduct tax on rent paid? TDS on rent payments can be a complex process, but we can help. HonestBroker's easy-to-follow guide will show you how to calculate and deduct tax on rent paid, so you can stay compliant with the law. Read on to learn more.

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TDS on Rent Payment_ How to Calculate and Deduct Tax on Rent Paid_ - Google Docs

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  1. HonestBroker ĪDSonRentPayment:Howto CalculateandDeductĪaxonRent Paid? WhatisTDS? 1

  2. The TDS concept was introduced to collect tax from the source of income itself. According to this idea, a person (the deductor) who mustpayanotherperson(thedeductee)aspecifiedpaymenttype must withhold tax at source and remit it to the Central Government. The deductee from whose income tax was withheld at source would be entitled to receive credit for the amount withheld based on Form 26AS or a TDS certificate issued by the withholdingagent. TDSRateApplicableonRent ThepersonwhomustpayTDSonrentpaymentmustdeducttax atsource(i.e.,notanindividualorHUF).TDSonrentlimitforFY 2022-23isRs.2,40,000. AnorganizationmightpayRs.90,000permonthtorentanoffice, for instance. Since the annual rent exceeds the cap, after a 7.5% taxisdeducted,eachmonth,theownerreceivesacreditofRs. 83,250.Itisnecessarytopaythegovernmenttheremainingsum. HowisTDSonRentCalculated? The amount owed must be calculated to determine if a rent payment is subject to TDSon rent paid by the individual. The payeeisrequiredtofigureouttheTDSrateforrentandreduce theamountoftheannualamountexceedingRs.2,40,000. AksharEnterprises,forexample,makesmonthlypaymentsofRs. 35,000forequipment.TheyareincreasedtoRs.4,20,000per

  3. yearsinrent.ThepayeemustthereforedeductRs.525($1.5%) or1.5%TDSonrentalincome. • The payer is responsible for making TDS on rent deductions. If they don't, they must pay interest starting on the day the tax is deductibleandcontinuinguntilthetaxisdeductedatarateof1% each month. The payer must pay interest at a rate of 1.5% per month from the day the tax is deducted until the day it is deposited if they reduce the TDS on the rent amount but fail to remitittothegovernment. • HowtomakeaTDSPayment? • VisittheNSDLwebsitetostartthee-filingprocess. • IntheTDS/TCSarea,choose"CHALLANNO./ITNS281". Yourbrowserwilltakeyoutothee-paymentpage. • Enterthefollowinginformationonthispage. • IfyoudeductedTDSwhilepayingafirm,choose"Company Deductees"under"TaxApplicable."Otherwise,choose • "non-CompanyDeductees." • TypeintheassessmentyearandTANforwhichthePaymentis beingmade. • Typethe"PinCode"andchoosethe"State"optionfromthe drop-downmenu. • DecidewhethertopayforTDSonrentdeductedandpaidby youorTDSassessedregularly. • Select"NatureofPayment"and"ModeofPayment"fromthe drop-downmenu. • Pushthe"Submit"button.

  4. After submission, a confirmation screen will appear. The confirmationscreenwillshowthetaxpayer'scompletename asitappearsinthemasterdocumentiftheTANisvalid. Afterthedatayouenteredhasbeenconfirmed,youwillbe takentoyourbank'snetbankingwebsite. Afterloggingintothenetbankingwebsitewiththeuser's name and password provided by the bank, the taxpayer shouldproceedtocompletethePayment. Whenanelectronicpaymentismadesuccessfully,achallan counterfoil with the CIN, payment information, and bank name is presented. This counterfoil is evidence of the transaction's Payment. You must file your TDS return after makingtheTDSpayment.

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