Do you also rent out your house? Here's what budget 2019 has for you
Landlords earlier had to deduct tax deduction at source (TDS) if rent payable to them by the end of the year was Rs 1,80,000 but the limit has not been increased to Rs 2,40,000.
New Delhi: With expectations of the entire country attached to it, the Union Budget 2019 was one awaited announcement. From farmers to women, budget 2019 has made an attempt to allocate resources to every section of the society. One of the sections that have been awarded relief by the new budget are landlords.
If you are also a person who rents their house, there is a big relief that the new budget has to offer to you. A tax relief has been provided to landlords who rent their houses to non-individuals, i.e. corporates. As per the previous budget, landlords had to deduct Tax Deduction at Source (TDS) if the rent payable to them was more than Rs 1,80,000. According to the new budget, the limit has now been stretched to Rs 2,40,000 pa.
Also Read: Women’s security amongst priorities in Union Budget, Rs 1330 crore allocated
Providing relief to people who depend solely on rental income, the new budget has brought immense relief to landlords. Earlier, if the landlord's income was below the taxable limit or if he had invested in tax saving instruments and was capable of nullifying his tax liability then he was eligible of claiming refunds of the TDS.
As per Economic Times' report, earlier, any non-individual had to pay rent after (a) deducting 2 per cent for the use of machinery or (b) 10 per cent for the use of any land or building. However, no deductions were to be made if this amount was less than Rs 1,80,000. The report also added that any individual or member of a Hindu undivided family was to deduct income-tax if his gross receipts or turnover from the business was more than the aforementioned clauses of section 44AB of the Income Tax.
Freeing landlords of extra deduction, the new budget has intrigued a sigh of reliedf from them.The new budget proposed helps the case of landlords by increasing the TDS limit to Rs 2,40,000 from Rs 1,80,000 per annum.