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Rental Income TDS

Own property in India? Your tenant must deduct 31.2% TDS on gross rent. But your actual tax liability is much lower after deductions. See the difference.

= ₹30K

= ₹5K

Refundable via ITR

Excess TDS your tenant deducted

₹35K

DTAA does not reduce rental TDS, but municipal tax + 30% standard deduction make most of the gross TDS recoverable via ITR.

Annual rent₹3,60,000
Tenant TDS deducted31.2%-₹1,12,320
Less: Municipal tax-₹5,000
Less: 30% standard deduction-₹1,06,500
Net taxable rental₹2,48,500
Actual tax owed31.2% on net-₹77,532

We file the ITR that pulls back the excess TDS, typically 4-8 months from filing to refund credit.

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