TDS u/s 194I - If the payment exceed the limit in 12th month

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This query is : Resolved

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This discussion addresses TDS (Tax Deducted at Source) under Section 194I for rent payments. If a company pays monthly rent that, when aggregated over the financial year, exceeds the threshold limit, TDS must be deducted. Specifically, if rent increases mid-year and pushes the total annual payment over the limit in the 12th month, TDS is applicable on the entire amount paid during the year, not just the portion exceeding the limit or the increase itself.

kathir

kathir (Querist)
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29 May 2021 Dear Expert,

We are company paying rent to landlord on monthly basis. per month rent rs 19500 hence we are not deducting any TDS. We have paid sum rs 214500 upto Feb'21 ( 11 months ). Suddenly Mar'21 onwards landlord has demand to increase the rent payment hence we have increase the rent from 19500 to 26500. in this case how much TDS will be deducted.? for the whole amount of rs 241000 ( 214500 + 26500 ) or for rs 1000.?
Please share any supporting's ( Case law,Etc ) if TDS need to deduct rs 241000.