If you’re paying rent of over ₹50,000 per month, you’re not just a tenant anymore. Under Indian tax law, you also become a tax deductor. This rule applies whether you’re a salaried individual, a freelancer, or self-employed individual. This rule is appliable irrespective of whether you follow the old or new income tax regime.

TDS on Rent: What the Law Says

As per Section 194-IB of the Income Tax Act, any individual or HUF (not under tax audit) must deduct Tax Deducted at Source (TDS) if rent paid to a resident Indian landlord exceeds ₹50,000/month.

Applicable TDS Rates for FY 2024–25:

• 5% on rent paid from April 1 to September 30, 2024

• 2% on rent paid from October 1, 2024, onwards

This deduction must be made when paying or crediting the rent for the last month of tenancy (March 2025, or earlier if the rental ends sooner).

What You Must Do

Once you deduct the TDS, you must:

1. File Form 26QC (TDS return) within 30 days of deduction — for FY 2024–25, the deadline is April 30, 2025.

1. Issue Form 16C (TDS certificate) to your landlord within 15 days of filing — by May 15, 2025.

You don’t need a TAN (Tax Deduction Account Number); your PAN is enough.

Note: If your landlord doesn’t share their PAN, you must deduct TDS at 20%, subject to a cap of the final month’s rent.

Penalties for Non-Compliance

• 1% interest/month for delay in deduction

• 1.5% interest/month for delay in depositing TDS

• ₹200/day late fee for not filing Form 26QC

• Penalty up to ₹1 lakh for major defaults

Conclusion

If your rent is above ₹50,000/month, you’re legally responsible for deducting and depositing TDS—even if you’re not a business. The process is simple and doesn’t require a TAN, but missing deadlines can cost you big. Be proactive, comply early, and avoid penalties.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

The Income Tax Return (ITR) filing for the financial year 2024-25 is expected to start soon, once the Income Tax Department releases the relevant forms and utilities on its e-filing portal. Many salaried individuals are eagerly awaiting this to claim timely refunds.

Why Your Refund Might Be Withheld or Reduced

This year, taxpayers might notice smaller refunds or even receive none at all. The primary reason? Pending assessments from previous years. The tax department has sent emails to many, alerting them about old dues being adjusted against current refunds under Section 245(2) of the Income Tax Act, 1961.

Section 245(2) empowers the department to withhold or adjust refunds if there are outstanding tax liabilities from earlier years. Refunds in such cases are subject to clearance from the Jurisdictional Assessing Officer (JAO), which can cause delays.

Purpose Behind the Notices

The Income Tax department intends to recover past dues and prevent revenue leakage. Taxpayers whose returns are under assessment or reassessment may find their refunds withheld until verification concludes. According to tax experts, this signals a sharper focus by the department on closing past tax gaps before issuing current refunds.

How to Respond to a Notice

If a taxpayer receives a Section 245(2) notice, they should promptly log in to the e-filing portal and check the “Response to Outstanding Demand” section. In case of discrepancies—like already paid demands or errors—submit an online response with supporting documents.

If taxpayers are unable to resolve their query online, they can file a rectification request under Section 154 or contact their jurisdictional officer.

Conclusion

As the ITR season approaches, taxpayers must stay alert, review past filings, and respond swiftly to notices to avoid refund delays.

Read more on: How the Income Tax Department Is Using AI to Track High-Value Transactions

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

When you take a home renovation loan, the choice of your tenure can substantially impact your finances in the long-run. In this article, we will explore the implications of taking a ₹15,00,000 loan for 8 years versus 12 years at an interest rate of 11%.

Pros and Cons of Choosing the 8-Year Tenure

In the 8-year loan option, the monthly EMI is ₹23,563. Over the entire loan period, the total interest paid amounts to ₹7,62,013. This brings the total repayment to ₹22,62,013. While the EMI is relatively high, this plan helps clear the debt sooner and minimises the interest outgo.

Pros and Cons of Choosing the 12-Year Tenure

On the other hand, the 12-year loan option offers a more affordable EMI of ₹18,803. However, the trade-off is evident when looking at the interest cost: ₹12,07,679. This pushes the total repayment amount to ₹27,07,679, which is ₹4,45,666 more than the 8-year option.

Which is Better?

From a short-term perspective, the 12-year loan provides greater breathing room in terms of cash flow, making it suitable for individuals with tighter monthly budgets. However, this convenience comes at a significant cost in the long term due to the higher interest burden.

Conversely, the 8-year tenure, though heavier on the monthly EMI, proves to be much more economical overall. It is ideal for borrowers who can manage a higher EMI without compromising their lifestyle or other financial goals. This option leads to quicker debt freedom and substantial savings on interest.

Conclusion

Choosing between these two options boils down to your current financial capacity and long-term planning. If your income allows for a higher EMI, the 8-year loan is clearly more cost-effective, saving you over ₹4.45 lakh in interest. But if flexibility and lower monthly stress are your priorities, the 12-year loan provides that cushion—albeit at a higher overall cost.

Read more on: EMI Planning: Car Loan of ₹10 Lakh: 5 Yrs vs 7 Yrs – What’s Better for Your Budget?

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

The State Bank of India (SBI) has revised its special FD scheme, ‘Amrit Vrishti’. The new changes will be effective from 15th April 2025. The scheme was initially launched in July 2024 and concluded on 31st March 2025 after multiple extensions. However, it is now back with a revised interest structure.

The new scheme aims to promote deposit mobilisation by targeting senior and super-senior citizens.

Amrit Vrishti’s Interest Rates and Tenure

The ‘Amrit Vrishti’ FD scheme comes with a unique 444-day tenure. Under the revised structure:

• Senior citizens earn an interest rate of 7.55%

• Super senior citizens receive a slightly higher 7.65%

• The general public gets 7.05%

Compared to the earlier version, which offered 7.75% to seniors, this marks a 20-basis point reduction, likely influenced by recent repo rate adjustments.

Adjustments in General FD Rates

SBI has also revised interest rates across various FD tenures for the broader public and senior citizens. Notably:

• 1 year to <2 years: Reduced to 7.20% from 7.30%

• 2 years to <3 years: Cut to 7.40% from 7.50%

These changes are in line with market trends and central bank rate movements.

Revised FD Rates for Senior Citizens

As of 15th April 2025, here are the updated FD rates for senior citizens across different tenures:

• 7–45 days: 4.00%

• 46–179 days: 6.00%

• 180–210 days: 6.75%

• 211 days–<1 year: 7.00%

• 1–<2 years: 7.20%

• 2–<3 years: 7.40%

• 3–<5 years: 7.25%

• 5–10 years: 7.50%

No Deadline for Application

One major advantage for investors is that no deadline has been specified for applying to the reintroduced ‘Amrit Vrishti’ scheme, providing flexibility for planning and investment decisions.

Conclusion

SBI’s decision to bring back the ‘Amrit Vrishti’ fixed deposit scheme reflects its focus on retail deposit mobilisation, especially targeting senior citizens. Though slightly lower than before, the revised interest rates remain competitive, offering a secure investment option with attractive returns for conservative investors.

At 1:11 PM, SBI share price was up 3.04% and was trading at ₹795.20. 

Read more on: SBI Mutual Fund Launches ‘JanNivesh SIP’ to Promote Micro-Investing

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.