Is TDS deductible on rent by tenant?

This query is : Resolved

Archana (Querist)
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25 December 2024 Is the tenant liable to deduct tds on rent, security deposit payable to the landlord? If yes at what rate? Also whether tds should be deducted from the brokerage payable to the estate agent? If yes then at what rate?

Please consider both sinarios : rent above 50k and below 50k.
Please respond. Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 December 2024 Section 194-IB mandates that any individual or HUF (other than those required to undergo an audit under Section 44AB) who is responsible for paying rent exceeding ₹50,000 per month to a resident, must deduct TDS on such payments.
As per amendments in Budget 2024 is the reduction of the TDS rate under Section 194-IB from 5% to 2%. This change will take effect from 1st October 2024. The reduction in the TDS rate aims to ease the tax burden on rent-payers, especially individuals and HUFs who are not subject to audit under Section 44AB.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 December 2024 The person (not being an Individual or HUF liable for tax audit) who is responsible for paying of rent is liable to deduct tax at source u/s. 194-I of IT act.
TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2024-25. TDS rate u/s. 194-I for Rent of land, building, furniture or fitting is 10%.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 December 2024 Any person ( including an Individual or HUF liable for tax audit) paying any commission or brokerage is liable for TDS under section 194H since commission or brokerage u/s. 194H IT act. The rate of TDS is 2% with effect from 1st October, 2024.
The threshold exemption limit is Rs,. 15000/-

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