🚨 TDS on Rent Paid – Income Tax Notice Explained


Have You Received a Notice Regarding TDS on Rent? Here’s What It Means and What You Should Do.

If you have recently received a notice from the Income Tax Department stating discrepancies regarding House Rent Allowance (HRA) exemption and TDS on rent paid, don’t panic. Many salaried individuals claiming HRA exemption have received such notices during Assessment Years 2023-24 and 2024-25.

🧾 What the Notice Says:

The notice states that while you’ve claimed HRA exemption under Section 10(13A) for significant amounts (e.g., ₹5,75,000 and ₹5,14,800 for two consecutive years), no TDS has been deducted on the rent paid.

Therefore, the IT Department has flagged this and asked you to verify the claim and file an updated ITR (if necessary) on or before 31st March 2025.

🔍 Why Did You Receive This Notice?

This notice is generally triggered by the absence of TDS deductions (under Section 194-IB or 194-I) when:

  • The rent amount paid exceeds ₹50,000 per month (TDS required for individuals under Section 194-IB).

  • The PAN of the landlord is not reported.

  • The rent is shown in your ITR, but Form 26AS and AIS (Annual Information Statement) do not reflect any rent-related TDS entries.

  • You’ve claimed HRA exemption but haven’t submitted proper rent receipts or rental agreements to your employer or filed proper proofs.

✅ What You Should Do:

  1. Verify Rent Claims: Check your ITRs for AY 2023-24 and AY 2024-25. Did you rightly claim HRA? Are rent receipts and rental agreement valid?

  2. Check Form 26AS & AIS: Ensure the rent paid is reflected, and TDS, if any, has been reported.

  3. Contact Your Landlord: If TDS was not deducted, confirm why and check if their PAN was furnished.

  4. File Updated Return if Required: If any discrepancy is found, correct it by filing an Updated ITR (ITR-U) before 31st March 2025.

  5. Seek Professional Help: Such notices must be addressed carefully to avoid further scrutiny, penalties, or interest.

📣 Don’t Ignore These Notices!

Ignoring this notice can lead to:

  • Scrutiny proceedings

  • Penalty for incorrect claims

  • Disallowance of HRA exemption

  • Interest on excess refund

💼 How We Can Help:

At TAXLA SERVICES, we assist clients in:

  • Analyzing their HRA claims

  • Reviewing TDS on rent compliance

  • Filing updated ITRs

  • Responding professionally to income tax notices

📞 Contact us for expert guidance:
+91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 www.taxlaservices.com

📍 Visit us: 19, SBI Colony 3rd Street, Saligramam, Chennai - 600093

#TDSonRent #IncomeTaxNotice #HRAExemption #ITRNotice #UpdatedITR #Section194IB #TaxCompliance #TaxlaServices #ChennaiTaxConsultants #IncomeTaxHelp



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