The Income Tax Department is more proactive than ever, utilizing information gathered from various sources to assess the accuracy of Income Tax Returns. The Department has effectively transformed its entire network into a vigilant system and is acquiring comprehensive details about an individual's transactions throughout the year, including Fixed Deposits, Incomes earned, securities traded, Rent received, and Property sales or purchases, etc. Consequently, assesses have no option but to disclose their complete incomes.
The Disclosure of rent payment made by the Assessee for claiming HRA deduction was earlier mapped with the PAN of the Landlord, and the same started reflecting in AIS of the landlord as rent Income. Therefore, the Assessee could not disclose fake Rent as the same shall be considered as income of the Landlord.
Now, the department is invoking section 194-IB for the deduction of TDS on rent paid. The taxpayers are getting messages and notices where they have claimed deduction of HRA by declaring rent paid, but have failed to deduct the TDS on the same under section 194-IB. If you are the one who has received such notice, then this article discusses the possible course of action you may resort to.
1. Basis of issuance of Notice
The Income Tax Department selects the following method for sending Notices:
- Rent Paid Declared for Claiming HRA Deduction:
- The Income Tax Department picks the amount declared as rent paid while claiming HRA Deduction.
- As per Section 194-IB, TDS is to be deducted if the rent amount exceeds INR 50,000 per month or part of the month.
- Therefore, if rent paid to a landlord exceeds INR 6,00,000/-, then the same is selected for further validation.
- Validation with TDS Deduction:
- The IT Department cross-checks the TDS deducted by the Assessee on the rent under section 194-IB as per the filed TDS Return.
- Issue Notice:
- If no TDS is deducted by the Assessee or TDS is short deducted, then a notice is issued to the Assessee for failure to deduct TDS.
The Assessees are initially getting intimation mails and messages about checking their TDS compliance on rent paid. However, ignoring these intimations may result in notices.
2. Action to be Taken
The Assessee can take the following actions if he has failed to deduct and deposit the TDS under section 194-IB:
2.1 If HRA deduction is claimed without any actual payment of rent (i.e., Fake rent payment)
- If you have claimed deduction for HRA without any actual payment of rent, then it is time to rectify such mistakes.
- The due date to file revised returns has expired for all earlier financial years.
- Therefore, now the Assessee only has the option to file the updated return in Form ITR-U, where the Assessee can forgo the HRA deduction and have their error rectified by paying an additional tax amount with interest.
2.2 HRA deduction is claimed against the actual rent payment
If you have made actual payment of rent but failed to deduct the TDS, then first, we need to understand the consequences of the same:
2.2.1 Consequences of non-dedication of TDS on rent paid:
- As per Section 201 of the Income Tax Act, 1961, any person who is liable to deduct TDS but has failed to do so shall be considered as an Assessee in default.
- Accordingly, the person shall be liable to pay the amount of TDS along with interest at the rate of 1% or 1.5% per month or part of the month.
- Further, as per Section 221, the Assessee in default may become liable to a penalty which shall not exceed the amount of tax in default.
- So, in case of non-dedication of TDS, the taxpayer shall be liable to pay the TDS amount, interest, and penalty.
2.2.1 Deposit the TDS Amount with applicable interest:
- Deposit TDS with interest: The Assessee has the option to deposit the applicable amount of TDS along with interest and file the Form 26QC.
- Recovery of TDS amount from Landlord: However, in such scenarios, the tenant may sometimes find it difficult to recover the tax amount from the landlord. Issues can arise if the property is already vacated.
- 家主へのTDS（源泉徴収税）のクレジット：フォーム26QCを提出すると、TDSのクレジットが家主のフォーム26ASに反映され始めます。しかし、2023-24年度以前については、修正申告書の提出期限がすでに過ぎています。このような場合、家主が当該TDSのクレジットを請求することは困難になる可能性があります。
あわせて読みたい：不動産の売買におけるTDS（源泉徴収税）
2.2.2 「不履行納税者」とみなされないために家主から必要な書類を入手する：
- 所得税法第201条(1)項に基づき、受取人が以下の条件を満たしている場合、支払者は不履行納税者とはみなされません：
- 第139条に基づき所得税申告書を提出していること
- 当該賃貸収入を課税所得に含めていること
- 申告書で申告した所得に対する税金を納付済みであること
- したがって、納税者は家主から以下の書類を収集する必要があります：
- 該当年度の所得計算書
- 所得税申告書の受領証
- 当該所得が申告時に考慮され、対応する納税が完了している旨の公認会計士（CA）による証明書
- ただし、賃借人はTDSの支払期限から家主が所得税を納付した日までの期間について、利息の支払義務を負う可能性があります。
2.2.3 HRA（住宅家賃手当）控除の取り下げでは義務を免除されない
- 所得税申告からHRA控除を取り下げても、納税者のTDS源泉徴収義務が免除されるわけではない点に留意することが重要です。
- 年間家賃支払額が60万ルピーを超える場合、賃借人はTDSを源泉徴収し納付する義務を負います。
- したがって、HRA控除を取り下げることは解決策にはなりません。
3. 結論
人工知能（AI）や高度な情報技術ツールの導入により、所得税当局は納税者が年間を通じて行ったすべての取引を詳細に把握しています。従業員は、HRA控除を申請する前に、第194-IB条の規定が適切に遵守されていることを確認する必要があります。さらに、過去の年度分については、所得税当局からの通知やメッセージが正式な督促状に発展しないよう、賃借人は適時に適切な措置を講じる必要があります。
.avif)
