Rental Agreements

An unregistered 11 month rental agreement could be done on a Rs.100  stamp about 10 years ago. Then it jumped to Rs.200, later Rs.500, and now it’s Rs.510 e-stamp ( the amount a typical e-stamp vendor charge ). The way these rates are increasing, it feels like they’re moving at warp speed. Registration isn’t needed for 11 month agreements, but having it on e-stamp makes it legally valid. 

Income Tax

What remains to be seen is how the government plans to offset the potential revenue loss from the income tax slab revision. I believe the Union government took this step because it recognizes the growing frustration among taxpayers. However, to balance for the shortfall, more goods and services are likely to be brought under the indirect taxation.

TDS on rental income

As per the latest budget, TDS on rental income will be applicable only if the yearly rent is more than 6 Lakhs, instead of the earlier limit of 2.4 Lakhs. That is for the monthly rent up to 50k , TDS need not be deducted.