This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194Q is applicable to electricity charges for rental properties. The consensus is that TDS is not applicable in either scenario: whether the tenant pays the electricity bill directly to TNEB in the landlord's name, or reimburses the landlord who then pays the bill.
15 September 2025
Dear Sir /Madam, Kindly clarify whether TDS under section 194Q is applicable on electricity charges paid in respect of our rental building in the following scenarios: We pay the actual electricity bill (in the Name of Landlord) amount directly to TNEB. We reimburse the landlord for the actual electricity bill (In the Name of Landlord), and the landlord in turn pays TNEB. We would appreciate your guidance on the applicability of TDS in both cases.