Boosting Rental Income: New TDS Thresholds Unveiled

The government proposes increasing the annual TDS threshold on rent from Rs 2.4 lakh to Rs 6 lakh. This change aims to reduce transactions liable to TDS, benefiting small taxpayers. The adjustment will ease compliance burdens, allowing flexibility for smaller rental incomes and simplified tax deductions.

The government has taken a step towards simplifying tax compliance by proposing an increase in the annual threshold for Tax Deduction at Source (TDS) on rent, from Rs 2.4 lakh to Rs 6 lakh. This major update was revealed in Finance Minister Nirmala Sitharaman's Budget speech on Saturday.

By raising the threshold, the government aims to reduce the number of small transactions that come under the TDS net, thus benefiting small landlords and individual taxpayers. The adjustment is expected to provide clarity and uniformity in tax processes.

Industry experts like Aarti Raote of Deloitte India and Domnic Romell of CREDAI-MCHI have noted that this change will alleviate compliance burdens for small taxpayers and landlords, ensuring easier management of their rental incomes.

(With inputs from agencies.)