The government has given great relief to the people living in rented houses. Now people living on rent up to 6 lakh rupees will not have to deduct TDS. Till now its limit was Rs 2.4 lakh annually. Tax experts say that this announcement of the government will provide relief to a large number of people living on rent.
Both tenant and landlord benefit
This will reduce the tax compliance for people living on rent. For the last few years, the way the rent of houses has increased, especially in big cities, the limit of 2.4 annually for exemption from TDS was very low. There was a demand to increase it for a long time. Tax experts say that this announcement of the government will benefit both the landlord and the tenant.
What does it mean?
Right now a person lives in such a house, then whose annual fare is more than Rs 2.4 lakh, then he has to pay TDS and pay rent to the landlord. Now the tenant will not have to deduct TDS if the annual fare is up to Rs 6 lakh. Tax experts say that this rule increased the burden of income tax compliance on people.
Trying to make tax rules easier
Finance Minister Nirmala Sitharaman said that the government is going to make income tax rules easier for middle class. He also announced a change in several TCS rules with TDS. He said that the government will introduce the new Income Tax Bill in Parliament next week. Its focus will also be on giving the middle class relief in tax.
Also read: Budget 2025 Live
Realty Complex’s shares boom
The change in TDS rules on home rent payment led to a boost in the shares of realty companies on 1 February. The shares of Prestige Estates rose to 9.3 per cent. Sobha shares jumped up to 4.6 per cent. Shares of Phoenix Mills, DLF, Oberoi Realty and Godrej Properties also saw a jump of 1-2 percent.