Tds on rents
This query is : Resolved
21 October 2015
Sir/Madam. . I want to know what is the Slab on rent paid by bank to its employees to deduct TDS.
23 October 2015
Please give more information.
27 July 2025
Hey! Regarding **TDS on rent paid by a bank to its employees**, here’s what applies:
---
### TDS on Rent Paid by Bank to Employees
* When a bank pays rent to its employees (like house rent allowance or actual rent), **TDS provisions under Section 194I apply if the rent exceeds Rs. 2,40,000 per annum** (Rs. 20,000 per month).
* If rent paid **exceeds Rs. 2,40,000 in a financial year**, the bank must deduct **TDS @ 10%** on the rent amount exceeding this limit.
* If rent paid is **below Rs. 2,40,000 per year**, no TDS deduction is required.
---
### Summary:
| Rent Paid per Year | TDS Requirement |
| ------------------ | ------------------------------ |
| Up to Rs. 2,40,000 | No TDS deduction |
| Above Rs. 2,40,000 | Deduct TDS @ 10% on total rent |
---
### Additional Points:
* TDS should be deducted **at the time of credit or payment, whichever is earlier**.
* The employee’s PAN should be taken; otherwise, TDS @ 20% applies.
---
Let me know if you want a sample TDS calculation or related forms for the bank!
---
### TDS on Rent Paid by Bank to Employees
* When a bank pays rent to its employees (like house rent allowance or actual rent), **TDS provisions under Section 194I apply if the rent exceeds Rs. 2,40,000 per annum** (Rs. 20,000 per month).
* If rent paid **exceeds Rs. 2,40,000 in a financial year**, the bank must deduct **TDS @ 10%** on the rent amount exceeding this limit.
* If rent paid is **below Rs. 2,40,000 per year**, no TDS deduction is required.
---
### Summary:
| Rent Paid per Year | TDS Requirement |
| ------------------ | ------------------------------ |
| Up to Rs. 2,40,000 | No TDS deduction |
| Above Rs. 2,40,000 | Deduct TDS @ 10% on total rent |
---
### Additional Points:
* TDS should be deducted **at the time of credit or payment, whichever is earlier**.
* The employee’s PAN should be taken; otherwise, TDS @ 20% applies.
---
Let me know if you want a sample TDS calculation or related forms for the bank!
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