The key information sources under this information category are as under:
Rent received is reported through the tenant liable to deduct TDS under sections 194(b), 194(IB), and 10(13A) under Income Tax Act, 1961. A summary of the information in the above-mentioned sections is given below:
S.No | Information | Description |
1 | Rent Received (Section 194(b)) | Tenant responsible for paying of rent is liable to deduct tax at source on payment of rent, Deduction reports details of amount paid/credited, date of payment, details of Tas deduction in Form 26Q, this information is provided by the deductor to the deductee (taxpayer) in Form 16A. |
2 | Rent Received (Section 194(IB)) | Tenant (Individual/HUF) paying a rent of more than 50,000 per month is liable to deduct tax while making payment to the landlord. Tenant reports details of rent paid amount paid/credit, property details, date of payment and tax deduction details, etc. pertaining to rent paid in Form 26QC. |
3 | Rent/HRA claim of tenant reported by employer (TDS Annexure-II) | PAN of the landlord is reported by the employee to the employer if the exemption is claimed under section 10(13A). Employer reports PAN of the landlord to whom rent is paid by an employee in Annexure-II of the TDS statement (24Q) |
The approach for AIS processing and information handling is as under:
Information reported under section 194I(b), 194IB, and co-owner will be summed up at the deductor PAN level.
For each tenant (PAN), higher rent reported through TDS statement (194I(b)+194IB) and rent reported by co-owner of the property or reported in Annexure-II will be retained for a “Landlord -Tenant” combination and information source with the lower value will be marked as “Information is duplicate / included in other information”.
Employer reports PAN of the landlord to whom rent is paid by an employee in Annexure-II of the TDS statement (24Q). This information will only be shown only when the rent received from the tenant is not reported under other sources. The landlord can use the feedback option “information is not fully correct” to modify rent details.
The AIS information level feedback can be used for providing the following inputs:
Information is correct
Income is not taxable
Information is not fully correct – This functionality can be used to modify salary details.
Information related to other PAN/Year
Information is duplicate / included in other information
Information is denied
The feedback provided by taxpayers will be shown separately in AIS and will update the value in Taxpayer Information Summary (TIS).
The sum of rent received from all tenants will be reflected in the Taxpayer Information Summary.
All deductions from house property income like interest on borrowed capital, standard deduction to be claimed in return.
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