Higher TDS on rent: This is how you can reclaim it. A step-by-step guide
TDS on Rent: If the rent of your house is more than Rs 50 thousand, then you must know that TDS is also deducted on it. This TDS has to be deducted by the tenant himself on the rent paid to the landlord and has to be deposited with the government by the 7th of the next month. From October 1, 2024, this TDS has been reduced to 2 percent (TDS Rate), which used to be 5 percent before that.
In such a situation, it is possible that some people may have deducted 5% TDS instead of 2%. In this situation, even if you have deducted 5% TDS, the landlord will get the benefit of only 2% TDS credit. In such a situation, you can either claim a refund of the additional TDS or get it adjusted from the landlord.
How to get refund of excess TDS?
Complete information regarding TDS refund has been given on the Income Tax Department’s TRACES website. Let’s know how to get the refund.
Step 1: Login to the TRACES website and click on the Statement Payment tab under Request for Refund.
Step 2: Go to the Refund Checklist there and click on Proceed.
Step 3: After this, you will have to first select in the section code whether you are taking this refund under section 195 or not. After that you will have to tell the reason for asking for refund and then click on Add Challan.
Step 4: Provide invoice details and answer some frequently asked questions.
Step 5: In the next step, you will have to proceed by giving the bank account details.
Step 6: A verification page will open in front of you, click on Proceed.
Step 7: After this the confirmation page will open, where you will have to click on Submit Refund Request.
Step 8: On the next page, select Digital Signature Certificate and proceed further. By doing this, your refund request will be processed.
Form No. 26B Acknowledgement has to be sent to the Assessing Officer within 14 days. Keep in mind that if the refund amount is more than Rs 50 lakh, then it will be sent to the ADC for approval. You can know the status of your refund by going to the Track refund Request tab.
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