Are you paying rent more than 50000?

As per the latest amendment under section 194 IB of the Income tax Act, 1961, The Individual or HUF should deduct the tax on the rent that they are paying to the resident persons if rent more than 50000 per month or part of a month during the previous year.

Points to be noted:

>> It is for commercial and residential purposes

>> TDS @5% is deducted from rent above Rs 50,000

>> Tax is to be deducted from total annual rent paid to the resident landlord by the tenant.

>> Tax is to deducted once in the financial year at the end of the year or in the month when the premise is vacated / on termination of the agreement

>> Where the property is vacated during the year, the tax needs to be deducted on the last day of the tenancy.

> Tenants do not need TAN

How to Pay TDS on Rent more than 50,000 Rupees?

The tenant of the property has to furnish information regarding the transaction, online on the TIN website i.e after successfully providing all the information.

Tenant/deductor can:

  • either make the payment online (through e-payment option) immediately or
  • make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on TIN website (

Contact us if you need help, this CA in Mumbai can help you navigating this complex course. We are conveniently located in Kandivali West, Mumbai.

Also see this article on TDS on Sale of Property

Rent more than 50000 ? | TDS Sale of Property | RERA CA | Service Tax

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