TDS ON RENT FOR THE F.Y. 2025-2026

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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.

16 December 2025 TDS not applicable as rent payable is less than 6 lacs.

16 December 2025 What if rent i vacant factory on May 2026. what will be TDS applicability ?


17 December 2025 TDS applicable if rent exceeds 6 lacs during next year.

17 December 2025 TDS on full amount or part amount ? only amount exceed 50000 P.M. or entire amount ?

19 December 2025 Dear Urvashi,
It is on full amount of rent


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