Paid 5% TDS on rent? This is how you can reclaim it. A step-by-step guide

As a tenant if you are paying a rent for more than ₹50,000 a month, you are supposed to deduct TDS (tax deducted at source) of 2 percent at the time of giving money to the landlord. Before Sept 20, 2024, the tax rate stood at 5 percent. So, if you too deducted extra tax, you can reclaim it by applying for a refund on TRACES portal.

Taxpayers who file their tax return under the old tax regime are entitled to claim exemption for house rent exemption (HRA). Under the old tax regime, HRA is exempted under section 10(13A) of Income Tax Act for salaried individuals, explains the information on the Income Tax India potal.

Here, we share a step-by-step guide to reclaim the extra tax paid.

Claim the extra TDS paid: Step by step guide

Step I. Login to TRACES website where you will see the landing page.

Step II. At this stage, you are supposed to click 'request for refund (for forms 26QC)' under “statements or forms” tab

Step III. Make sure to go through the checklist and click 'Proceed' before submitting.

Step IV. Now you can select at least one of the reasons mentioned there for which you are raising refund request. Now you can click 'add challan' before proceeding.

Step V. Now, you can share challan details for which taxpayer intends to claim refund.

Step VI. You can now check challan consumption details before clicking “ I agree” for the declaration.

Step VII. Now you can enter bank account details. Thereafter, click 'Proceed'. Following this, you will see a verification Page.

Step VIII. Now you can confirm by clicking 'submit refund request' to continue TDS refund request.

Step IX. Once you click, 'Submit Refund Request' button, a pop up will be displayed to validate the request through DSC (Digital Signature Certificate) or Aadhaar.

Following this, you can track refund request for forms 26QB/26QC/26QD).

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