Tds deduction queery

If the rent agreement is with only one owner for ₹67,500 per month, then TDS u/s 194-IB should be deducted on the full rent of ₹67,500 @ 2%, even if payment is split between the owner and his brother. Payment split cannot change TDS liability unless the brother is also a legal co-owner/landlord.

However, if the agreement itself mentions both owners and specifies 50:50 ownership/rent share, then rent payable to each owner is ₹33,750 per month. Since each payee receives less than ₹50,000 per month, TDS u/s 194-IB should not be applicable.

Therefore, the key point is whether the second person is a genuine co-owner/landlord under the agreement and property records, not merely whether payment was split.

Absolutely correct @ Aaskok FC Advisory.

Additionally @ Mustafa should note :-

The coowner should exist in Property Registration Records otherwise the rent payment could be claimed as not fully paid to the ACTUAL SINGLE OWNER [sometime in future] and the tenant would be in trouble not only TDS wise from IT Dept, but also demand from the SINGLE LANDLORD for all the UNPAID rent.