TDS EXEMPTED LIMIT AND RATE ON RENT PAID BY A PARTNERSHIP FIRM

• The person (not being an Individual or HUF ) who is responsible for paying of rent is liable to deduct tax at source.
• TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2022-23 (the threshold limit was Rs. 1,80,000 until FY 2018-19).
• TDS on rent is required to be deducted at source at the time of credit of ‘income by way of rent’ to the account of the payee or at the time of payment, thereof, in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.
• TDS on  Rent  paid for office Building is 10% 

Hence you being a partnership firm should deduct TDS @ 10% on OFFICE RENT PAID u/s.194I(b). if above conditions satisfies.

*** TDS threshold limit for deduction of tax on rent is Rs 2,40,000 for the FY 2023-24 (the threshold limit was Rs. 1,80,000 until FY 2018-19).

 

Sec 194I for a firm paying rent:

• A partnership firm must deduct under 194I regardless of its turnover (the turnover exemption applies only to individuals and HUFs).

• Rate: 10% for land, building or furniture; 2% for plant, machinery or equipment.

• Threshold: from 1 April 2025, TDS applies where rent exceeds Rs 50,000 for a month or part of a month (per payee). Earlier, it was Rs 2.4 lakh in aggregate during the FY.

• Deduct on rent excluding GST. Deposit by the 7th of the next month (30 April for March), file 26Q, and issue Form 16A.

• If the landlord's PAN is unavailable or inoperative, 20% applies.