Noida: New decisions of the Central Government, it is no longer easy for landlords to rent out houses. It has been made mandatory for landlords to follow many new tax-related conditions by renting out houses, which is becoming a big challenge for them.
The Central Government has implemented new rules
The Central Government implemented some new and strict rules for landlords a few days ago. In view of the case of tax evasion and not properly declaring the income from rent by landlords, the Central Government has enforced new rules. Now landlords will have to pay tax on the income from rented houses and it has been made mandatory to declare it as Income from House Property.
Tax will have to be paid on income from rent
The Central Government had said in Budget 2024 that landlords will have to pay tax on income from rent. Earlier, some landlords did not even get a rent agreement done so as not to pay tax, but now this will not happen. According to the new rules, landlords will have to declare the entire rental income to avail tax rebate. If they do not do so, a penalty can also be imposed on them.
Have to show the entire income received from rented property
This is a new tax policy of the central government in which landlords have to pay tax on the income from their property. Earlier many landlords used to pay less tax by not disclosing the actual income of rent, but now the government has decided that this will not happen. Now the entire income received from the rented property will have to be shown correctly in the tax return.
Penalty will be imposed if income is not disclosed
This new rule has been implemented. It will be mandatory for landlords to follow these rules while filing tax returns in the financial year 2024-2025. If a landlord does not disclose his income in the tax return, then a penalty can be imposed on him.
Opportunity to save up to 30% tax
Some relief has also been provided to landlords with these rules. The Central Government has allowed saving up to 30% tax on income from property so that the landlord will not have to pay part of his income as tax. The purpose of implementing these new rules is to ensure that landlords follow tax laws and the entire revenue comes to the government treasury. This will not only benefit the government but will also reduce incidents of tax evasion.
There is also a provision for exemption in tax
Landlords will now have to be more careful, as under the new rules, it has been made mandatory to pay tax and declare the income from property correctly. However, the government has also given some exemptions in tax, so that landlords can get partial relief.