Rules of TDS : Finance Minister Nirmala Sitharaman has also changed the rule of TDS on house rent while presenting the budget for the financial year 2025-26. The government is increased the limit of exemption from TDS in house rent from Rs 2.4 lakh to Rs 6 lakh. During the budget, the finance minister said that this will reduce the number of transactions under the ambit of TDS. Now the question arises that who will benefit the tenant or landlord more from this new rule? Let’s know.
Benefitting both the landlord and the tenant
Suppose you have rented one of your houses for Rs 2.4 lakh per year. Until now, the tenant used to pay you rent after a TDS deduction, which is no longer the case. Now you have to pay the rent without TDS deduction. Due to this, the amount you get as rent will increase. This will benefit both the landlord and the tenant as the exemption limit on TDS has been increased from Rs 2.4 lakh to Rs 6 lakh.
These tenants will get a big relief
In fact, home rents have risen exponentially over the past few years. In the first month, the tenant had to deduct TDS on rent of Rs 20,000, while now there is no need to do so even on rent up to Rs 50,000. This will give a lot of relief to the people living in the metro.
How many TDS deductions are allowed on rent?
After the new changes made in the budget, now houses whose annual rent is more than Rs 6 lakh will have to pay rent to the landlord after TDS deduction. Explain that the tenant is allowed to deduct only 10 percent TDS on rent. If the landlord does not have its own PAN card, the TDS rate will also increase by 20 per cent.
