Tds on rent paid

22 May 2019
If I pay a rent of more than RS 50,000 per month to a landlord who is a 'resident', I am required to deduct and deposit TDS @ 5%. I believe this is under section 194. But if the landlord is a non-resident, the TDS deducted and deposited is under section 195. If this understanding is right, I want to know what is the rate of tax deduction. Also is the limit of Rs 50000 is still applicable or is there any limit at all and I must deduct TDS even at lower rent.

B.Chackrapani Warrier (Expert)
23 May 2019
+ In the case 'resident land lord, your understanding is correct. Section is 194-IB

+ If the land lord is 'non resident' section 195 attracts. Tax rate is 31.20% subject to changes, if any, made in each Finance Act, No threshold limit to attract deduction.

Hari P Mital (Querist)
23 May 2019
Thank you Mr Warrier

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