At present, companies distributing dividends are required to deduct Tax Deducted at Source (TDS) at a rate of 10% on dividends exceeding Rs 5,000 in a financial year.
The higher TDS limit on rent is set to ease compliance for tenants, boost cash flow for small landlords, and reduce tax deductions on lower rental transactions.
In a relief for taxpayers, Finance Minister Nirmala Sitharaman on Saturday announced an increase in the threshold for Tax Deduction at Source (TDS) on rent from Rs2.40 lakh per annum to Rs6 lakh per ...
In her speech, the finance minister said that the measures are intended to reduce the number of transactions liable under TDS, benefiting small taxpayers receiving smaller payments.