On 1 February 2025, Finance Minister Nirmala Sitharaman presented the budget for the new financial year 2025-26. In this budget, she has given a big gift to the landlords. In the budget, she clarified that the annual limit of TDS on rent will be increased.

Important news for landlords

This is very important news for those who increase their income by renting out houses. The Finance Minister has indicated an increase in their income with this announcement. In its budget on income from rented property (Income tax), the Central Government has increased the limit of tax deduction from the current Rs 2.4 lakh annually to Rs 6 lakh.

This gift will be available on the rental amount.

Union Finance Minister Nirmala Sitharaman presented the budget for the new financial year 2025-26 on 1 February. In this, she talked about increasing the annual limit of TDS on rent. If this happens, the amount of transactions liable for TDS will be reduced.

The rule is coming into effect from April 1

This will benefit taxpayers who receive payments at a small level. This new rule announced by the Central Government during the budget will come into effect from the new financial year i.e. April 1, 2025. This will benefit the owners who give property on rent.

Know what are the rules at present.

If we talk about the rules related to this, then section 194-I of the Income Tax Act will be applicable here. Under Section 194-I of the Income Tax Act, when the income exceeds Rs 2.4 lakh in a financial year, then income tax should be deducted at the applicable rates while giving any amount to the resident as rent.

This provision has been made now.

At the same time, in the budget for the year 2025-26, it has been decided to increase this tax deduction limit of income in the form of rent to Rs 50,000 per month. This new provision announced by the Central Government will be applicable apart from the individual taxpayer or undivided Hindu family.

Understand it like this.

Generally, it can be understood like this that if land, machinery, and some other things are taken on rent for a few months (Tenant Rights) for more than Rs 50,000, then a TDS deduction will be mandatory for it. Now that the annual TDS limit on rent has been increased to Rs 6 lakh (Income tax), then small taxpayers and landlords will benefit greatly from this.

Income tax limit also increased.

Union Finance Minister Nirmala Sitharaman has made many big announcements for taxpayers in the general budget presented on February 1 this year. According to the new regime, the Finance Minister has increased the tax exemption limit from Rs 7 lakh to Rs 12 lakh. Along with this, many changes have also been seen in the tax slab in India. Some other changes including TDS have also been made during this time's budget.

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