TDS on Rent paid for Exhibition Hall / Space

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This discussion clarifies whether Tax Deducted at Source (TDS) is required on a one-time annual rent payment of £70,000 for an exhibition hall. As this amount is below the £6,00,000 threshold for Section 194I, TDS is not mandatory. However, if the payment includes services like event management, TDS might be applicable under Section 194J. There can be differing opinions on this matter, especially concerning the nature of the contract (rental vs. single event) and how the income is declared by the hall owner.

Rajesh

Rajesh (Querist)
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18 September 2025 If a person pays 70,000 as rent for exhibition hall / space ONCE IN A YEAR, whether TDS is required to be deducted u/s 194I.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 September 2025 As per sec. 194I, for one-time rent payments, evaluate if the total payment in the year crosses the applicable threshold. TDS under section 194I is not required to be deducted if the annual rent paid for an exhibition hall or space is ₹70,000, as it is well below the current threshold limit of ₹6,00,000 per financial year (as revised for FY 2025-26).

In cases where the exhibition hall also includes services like event management or technical assistance, fees paid for such services might attract TDS under Section 194J, typically at 10%.

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Rajesh

Rajesh (Querist)
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18 September 2025 Thank you for your kind reply!

Some of the web sites also mention that if monthly rent is more than ₹ 50000 pm or ₹ 600000 pa. Those sites also mention that payment should be continuous i.e. monthly. So, it was confusing.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 September 2025 Yes, confusing picture; but difference is rental contract and single event... Secondly, in most of such cases sec. 194J or sec 194C is predominant, as mostly the owners of the hall declare the income under business head rather than income under HP. Usually, assessee deduct TDS to be on safe side.
Till date department has not issued any notification over the issue. So, I do accept that there can be difference of opinion.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 September 2025 Good Luck...

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