No TDS on Rent if declaration in 15G/15H w.e.f 01.06.2016

By | May 19, 2016
(Last Updated On: May 19, 2016)

Enabling of Filing of Form 15G/15H for rental payments for NIL TDS on Rent

The provision of sub-section 194-I of the Act, inter alia, provides for tax deduction at source (TDS) for payments in the nature of rent beyond a threshold limit. The existing provisions provide threshold of Rs. 1,80,000 per financial year for deduction of tax under this section. In spite of providing higher threshold for deduction tax under this section, there may be cases where the tax payable on recipient’s total income, including rental payments , will be nil. The existing provisions of section 197A of the Income-tax Act, inter alia provide that tax shall not be deducted, if the recipient of certain payments on which tax is deductible furnishes to the payer a self- declaration in prescribed Form.No. 15G/15H declaring that the tax on his estimated total income of the relevant previous year would be nil.

In order to reduce compliance burden in such cases, it is proposed to amend the provisions of section 197A for making the recipients of payments referred to in section 194-I also eligible for filing self-declaration in Form no 15G/15H for non-deduction of tax at source in accordance with the provisions of section 197A.

This amendment will take effect from 1st June, 2016.
[Clause 84 of Finance Bill 2016]

TDS on Rent

Download Form No 15G for NIL TDS on Rent

Download form No 15 H for NIL TDS on Rent

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