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⚠️ Did You Pay Rent Above ₹50,000/Month? You Might Be on the Income Tax Department’s Radar!

Many taxpayers in India have recently been caught off guard by notices issued by the Income Tax Department for the assessment years 2023-24 and 2024-25. These notices highlight a specific compliance issue: non-deduction of TDS on rent exceeding ₹50,000 per month. If you’ve claimed House Rent Allowance (HRA) but failed to deduct the applicable TDS…

TDS on Rent: Employees Paying More Than ₹50,000 Must Deduct 5% TDS Under Section 194-IB

Many employees in India who pay rent exceeding ₹50,000 per month may unknowingly violate tax laws due to a lack of awareness about Section 194-IB of the Income Tax Act. This provision mandates that individuals (including salaried employees) must deduct and deposit 5% TDS (Tax Deducted at Source) on rent paid to landlords if the…