TDS on rent paid by a doctor

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This discussion clarifies whether doctors are required to deduct Tax Deducted at Source (TDS) when paying rent for their clinic. The obligation depends on two key factors: the doctor's turnover in the preceding financial year and the monthly rent amount. Specifically, if the previous year's turnover exceeded £50 lakh, TDS deduction is compulsory. Furthermore, under Section 194IB, individuals not liable for audit under Section 44AB must deduct TDS on rent paid to a resident if it exceeds £50,000 per month.

Mahesh S M

Mahesh S M (Querist)

22 February 2025 is a doctor liable to deduct tds if he pays rent for his clinic?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 February 2025 Depends upon his turnover in preceding FY and also on rent amount.

Mahesh S M

Mahesh S M (Querist)

22 February 2025 Sir, do you mean that if he comes under the audit he has to deduct TDS? or if the turnover exceeds 50Lac he has to deduct TDS? what should be considered?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 February 2025 If turnover in preceding year exceeds 50 lakhs TDS deduction is compulsory.
Secondly it also depends on rent amount. According to Section 194IB, it is mandatory for any person, i.e., individuals / HUF who is not liable to audit u/s 44AB, to deduct TDS for rent paid to a resident exceeding Rs 50,000 per month.

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