Tds on rent u/s 194ib of income tax act

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niki (Querist)
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17 June 2019 Dear All,

I have taken a residential flat on rent in Mumbai for Rs. 70,000/- per month which has two owners i.e. the husband and wife are co-licensors in the leave & license agreement.

Every month, I transfer Rs. 35,000/- to the husband's bank account and another Rs. 35,000/- to the wife's bank account separately.

Since, the rent paid to each landlord is less than 50,000/- per month, are provisions of section 194IB attracted in respect of the said rented property?

Am I liable to deduct TDS on the rent payment u/s 194IB of the Income Tax Act?

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 June 2019 No need to deduct tax since each tenant is paying less than the threshold limit.

Inference :- CBDT Circular 715 ( question 21) dated 8-8-1995 .Same anaology can be applied for 194IB as well.

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