TDS Applicability on Hotel Room Rent Exceeding Rs 240000 in FY 2024-25

Under Section 194I of the Income Tax Act, 1961, TDS is applicable on payments for hotel accommodation if it is taken on a “regular basis,” which means rooms are earmarked or the hotel is legally obligated to provide rooms as per an agreement.

TDS under Section 194-I applies if the total rent paid or payable during the financial year exceeds ₹2,40,000. TDS at 10% on the rent paid. The limit has exceeded to Rs. 6 lakhs applicable for FY 2025-26 onwards,