Related to tds on rent
This query is : Resolved
karan pahuja
(Querist)
26 May 2012
I HAD PAID THE RENT OF RS 20000 PER MONTH OF FACTORY DO I HAVE TO COMPULSORILY DEDUCT THE TDS.
AS I DONT HAVE THE TIN NO. THEN HOW CAN I DO:
AS I DONT HAVE THE TIN NO. THEN HOW CAN I DO:
26 May 2012
If the payer is an individual income tax is to be deducted on rent only if he/she is covered under tax audit u/s 44AB of the Income tax Act,1961. On the other hand, if the status of the payer is other than 'individual', tax has of be deducted u/s 194I of the said act.
karan pahuja
(Querist)
26 May 2012
sir, please specify in simple language & to the point that do i need to deduct tds or not.
21 July 2025
Sure! Here's the simple answer:
If you are an individual or HUF (Hindu Undivided Family):
You only need to deduct TDS on rent if your total income from business or profession exceeds ₹1 crore (or if you are required to get a tax audit under section 44AB).
If you are a company, firm, or any other entity (like LLP, trust, etc.):
You must deduct TDS on rent payments exceeding ₹2,40,000 per year (i.e., ₹20,000 per month × 12).
Since your monthly rent is ₹20,000 for factory:
If you are an individual and not covered under tax audit, no need to deduct TDS.
If you are a company or firm, you must deduct TDS at 2% on rent paid.
Regarding TAN (Tax Deduction Account Number):
You need TAN to deduct and deposit TDS.
If you don’t have TAN, you can apply for it online on the Income Tax Department website.
You cannot deduct TDS legally without TAN.
Summary:
Are you an individual not under tax audit? → No TDS required.
Are you a company/firm or individual under audit? → TDS required at 2%.
If you are an individual or HUF (Hindu Undivided Family):
You only need to deduct TDS on rent if your total income from business or profession exceeds ₹1 crore (or if you are required to get a tax audit under section 44AB).
If you are a company, firm, or any other entity (like LLP, trust, etc.):
You must deduct TDS on rent payments exceeding ₹2,40,000 per year (i.e., ₹20,000 per month × 12).
Since your monthly rent is ₹20,000 for factory:
If you are an individual and not covered under tax audit, no need to deduct TDS.
If you are a company or firm, you must deduct TDS at 2% on rent paid.
Regarding TAN (Tax Deduction Account Number):
You need TAN to deduct and deposit TDS.
If you don’t have TAN, you can apply for it online on the Income Tax Department website.
You cannot deduct TDS legally without TAN.
Summary:
Are you an individual not under tax audit? → No TDS required.
Are you a company/firm or individual under audit? → TDS required at 2%.
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