Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Budget 2017: Paying rent over Rs 50,000 a month? Get ready to deduct 5% TDS

Individuals and HUFs paying rent of Rs 50,000 or more per month will now have to deduct 5% tax at source i.e TDS at the rate of 5%, as per Budget 2017 proposals. This move is aimed at ensuring that recipients of large rental incomes come into the tax net as they would be forced to report the full rental income in their tax returns in order to claim benefit of the TDS amount. This change is proposed to be made effective from 1.6.2017.

The existing provisions of section 194-I of the Act provide for TDS at the time of credit or payment of rent to the payee beyond a threshold limit. Currently, this provision is applicable to Individuals or Hindu undivided family (HUF) which is liable for tax audit under section 44AB.

However, Individuals and HUF other than those liable for tax audit were not liable to deduct tax at source under this section i.e. section 194-I of the Act. In order to widen the scope of tax deduction at source, it is proposed to insert a new section 194-I B in the Act to provide that Individuals or an HUF (other than those covered under 44AB of the Act), paying to a resident, rent of over Rs 50,000 per month, shall deduct tax at source of 5%.

However, to make this rule tax -payer friendly and easy to comply with, it is proposed that the payer need not obtain a TAN and is required to deduct the tax only once in a financial year.

It is proposed that tax shall be deducted at the time of credit of rent, for the last month of the financial year or the last month of tenancy if the property is vacated during the year to the account of the payee.

Source: The Economic Times


Issue TDS Certificates of FY: 2016-17 (Quarter 3) by 15th February, 2017

Last date for issuance of TDS certificates for Quarter 3 of FY: 2016-17 is 15th February, 2017

The above is applicable for all other than government deductors

Delay in certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted. Click here for more details

Quick steps to generate TDS Certificate using TDSMAN

In TRACES Information menu

  1. Request for Form 16A.
  2. After acceptance, go to “Download Requested files” to download the file.
  3. Download PDF converter Utility to create PDFs.

In PDF Converter Utility provide the path of the downloaded file. Provide your TAN as password and click on “Proceed” to create the certificates.

Note: You can send your downloaded certificate file for conversion to, if you are facing any problem.


TDSMAN (FY: 2017-18) released – avail Early Bird offer

Keeping its tradition, TDSMAN is one of the first to have released the version for FY: 2017-18. This will serve its users for the following:

TDSMAN is packaged with advanced corrective and validation features that help you prepare zero error TDS Return. Visit for more information.

Order Now and avail ‘Early Bird’ discount of Rs. 400 on the regular price by using Coupon Code ‘TMNEW‘.

This discount is valid for limited period.

Click Here to download the trial version of TDSMAN (FY: 2017-18) for your evaluation.

Click Here to place your Order online.

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