Tds deduction queery

TDS / TCS 574 views 2 replies

mustafa

saervice

46 Points Posted on 26 April 2026

Rent agreement of shop made between owner and tenant for 67500 per month hence tds to be deducted at 2 percent as assesee is non audit.

Rent Agreement made between one owner and tenant but tenant have made the payment to owner and also his brother rent amount half to both hence 67500/2

1) So question tds to be deducted as per rent agreement as it's have only one owner or as the payment have been divided to both so at both pan number tds to be deducted

2) if rent agreement have both owner name and mentioned rennt to be divided 50.50 so whther tds to be deducted for both owner as both will recd payment below 50k .

Replies (2)

Quick Summary

TDS on ₹67,500 rent depends on ownership. If the agreement has one owner, deduct TDS u/s 194-IB @2% on full rent, even if split. If both are legal co-owners with 50:50 share, no TDS applies as each gets <₹50,000. Ownership proof is crucial.

Aashok FC Advisory

Finance Compliance Consultant

1030 Points Posted on 26 April 2026

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.

Ranjan

1423 Points Posted on 26 April 2026

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.