Rental agreement now mandatory for filing Income Tax return?
Posted on: 15/Aug/2018 12:24:44 PM
The Income Tax Department officials have recommended to the central government department of direct taxation that the rental contract number of the individuals who stay in rented houses must be furnished while filing the Income Tax returns.
The filing of the Income Tax returns for the financial year 2017-18 commenced in April and is in progress. From the current financial year, it has been made mandatory that all those who whose incomes, whether monthly salary or pension, exceeds the IT limits must file their Income Tax returns.
The Income Tax return filing is mandatory even for those individuals who have taken action to bring their annual income level below the taxable limit by making investments in various tax saving avenues.
In this situation, a new factor, that the rental contract agreement number registered under the Rental Act proposed by the Tamil Nadu State Government in the Legislative Assembly must be furnished while filing the IT returns.
The Income Tax Department officials explained in this regard that the state government of Tamil Nadu has planned to implement the House rent Act. As per this, it is mandatory to register the contract agreement between the landlord ad the tenant.
After the above registration, while filing the IT returns and mentioning the rental amount under the section House Rent, the rental contract agreement number has to be furnished. A strong recommendation has been made on this issue on behalf of the Income Tax Department officials to the central government department of direct taxation.
Once the announcement that this number is mandatory is made, many landlords will come under the taxable bracket. Accordingly, there will be an increase in the number of individuals filing the Income Tax returns.
