The Income Tax Department is now reportedly sending notices to salaried taxpayers who have claimed House Rent Allowance (HRA), but did not deduct tax at source (TDS) on rent payments in the past financial years. These notices are to ask the taxpayers to verify their claims and if they are incorrect, to amend their tax returns before the March 31 deadline, according to a Mint report. The law states that tenants must deduct 2 per cent TDS (which was reduced from 5 per cent in October 2024) if their monthly rent exceeds ?50,000, as long as the landlord is a resident Indian.