This discussion clarifies TDS applicability on factory rent for a partnership firm liable for tax audit in FY 2025-2026. The rent varies monthly, exceeding the ₹50,000 per month threshold for part of the year. The consensus is that TDS will be applicable on the full rent amount if the total annual rent exceeds ₹6 lakhs, not just the excess portion. The applicability remains even if the factory is vacated mid-year, provided the total rent paid during the financial year crosses the annual limit.
16 December 2025
Hii!!!! partnership firm liable to tax audit under income tax act, my factory rent is 48000 P.M. from April to Sep 2025 and from October to January -72000 P.M. , i have to vacant from Feb onwards, kindly explain TDS applicability for the same.