Moneyconrol.com-How the budget’s TDS measures can spur rental housing growth
Finance Minister Nirmala Sitharaman's announcement in the union budget that the threshold for tax deducted at source (TDS) on rental income will now be Rs 6 lakh per annum, has raised hopes of increased supply among watchers of the rental housing market. The current threshold is Rs 2.4 lakh per annum.
The primary beneficiary markets are expected to be metros and large cities, where most rentals are at or near the new TDS threshold of Rs 50,000 per month.
Besides that, observers also said that the compliance burden on both landlords and tenants is expected to reduce, as many tenants no longer have to deduct TDS nor do landlords need to declare rental income at or under Rs 6 lakh per annum.
