RENT TDS for individuals

Hi,

Plz clear, if an individual (Salaried Person) is paying building rent 11 K PM, is he liable to deduct TDS?

If yes, should he have to apply for TAN no. ?

Replies (11)

Hi suresh...

Section 194I doesnot apply to Individual and HUF...

Section 194I goes like this.....Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of—

 (a)   fifteen per cent if the payee is an individual or a Hindu undivided family; and
 (b)   twenty per cent in other cases :
 
However this rates are old and new amendments have been made in the rates and now the new rate is 10% for individual,HUF and for any other cases as well.

 

he is liable to deduct only if he is covered under audit in section 44AB and that too when rent is for office building and not for resedential purpose

Hi ashish

Here suresh has clearly mentioned dat the assessee is a salaried person and he is not carryin any business so applicability of section 44AB is irrelevant....

and thus a salaried person does not have to deduct TDS....I stand still on my opinion...

yes dear, thats what i mentioned

thanks & regards

Thx Harshal :)

Thx Ashish /)

 NO

Originally posted by :Harshal
" Hi ashish

Here suresh has clearly mentioned dat the assessee is a salaried person and he is not carryin any business so applicability of section 44AB is irrelevant....

and thus a salaried person does not have to deduct TDS....I stand still on my opinion...
"

 yes i agree with harshal 

because  tds on rent sec 194 - I is only applicable when there is person is NINH i.e non individual and non huf

No. Rent up to Rs.12000/- P.M no need to deduct tds

Hai Mr. Ramesh

194 I applies only when rent exceeds Rs.1,20,000/- p a and not Rs.12,000/- p.m

TDS provisions are not at all applicable to salaried persons. Tax has to be deducted at source only if the expenditure is to claimed as deduction from profits and gains of business and profession. Further, rent is not allowed as deduction to salaried persons from salary. For a salaried person, there is no applicability of provision. So, the questions of 44AB, 120000 p.a., Individual/HUF, etc. doesnot arise.

 

Further, i would like to clear that if the rent is paid for residential purposes and is to be claimed as deduction under the profits and gains of business and profession (i.e. to say when a company takes a guest house and claims the rent as deduction from its income) then TDS provisions shall be attracted if the rent exceeds the threshold limits.

 

To conclude TDS provisions shall not be applicable to a salaried person when he makes any payments.

 TDS is not applicable

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details