An owner has to declare the rental income in their income tax returns under the income from house property (for rental income from house property) and income from other sources (for other rental incomes like car, bike, machinery, etc). Also if the total rental income is more than INR 20 lakhs in a year then that individual shall be liable for the compliances of GST as well.
By using our Smart tax solutions you can automatically get your income mapped to the tax returns, claim the necessary exemptions and file your taxes like a pro. If you are getting a yearly rental income of more than INR 20 lakhs, we recommend you to register yourself as a business user to file your GST returns.
A tenant can claim the rent paid for take a house property as an exemption on the taxable income in the form of House Rent allowance (HRA) by submitting the necessary proofs to your employer. Also a tenant is liable to deduct a TDS u/s 194-IB if the monthly rental amount is above INR 50,000.00 and the rate at which the TDS needs to be deducted is 5%. There are various other conditions as well and we recommend you to consult a professional or raise a support ticket to know more about TDS on rent.
Using Smart rent and Smart tax solutions shall help you comply with the necessary regulatory compliances.