The current rule stipulates that annual rent paid in excess of Rs.180,000/- per annum calls for TDS to be deducted by the payer. It is creating anomalies.
Currently, the Income Tax Act stipulates that annual rent paid in excess of Rs.180,000 requires the payer of rent to deduct TDS and deposit the same with the government of India. While this is a laudable measure, the limits and the methodology require a re-look. An annual rent of Rs.180,000/- translates into a monthly rent of Rs.15,000/-. This is unrealistic for most metros. This limit requires to be modified to at least Rs.500,000/- to make it more meaningful. Continue reading