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TDS on Rent 2% of 5%

TDS 1314 views 4 replies

nkj81

43 Points Posted on 30 September 2024

My lease agreement ends in October 31 2024. I have been renting since January 2024.

I usually deduct TDS for the landlord in the last month of the agreement for the full financial year. Since this year TDS rate for the rent by individual is reduce to 2% (from 5%) effective October 1st 2024.

Should I be deducting TDS by 2% for all the 7 months, or apply 5% for the first six months and 2% for October month only.

Replies (4)

Quick Summary

For rent TDS where rate changes during the year, apply the applicable rate period-wise (e.g., 5% for earlier months and 2% only from effective date). Deduct TDS as per actual applicability for each period and deposit using Form 26QC, generally at the time of payment/last month.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211711 Points Posted on 01 October 2024

5% for first six months............

sabyasachi mukherjee

Profession Business

28207 Points Posted on 02 October 2024

Acknowledgement is mandatory

akshay verma

13 Points Posted on 16 January 2025

Hi,
My rent agreement with owner from April, 2024 till 31st March 2025 and I was planning to pay at last financial month that is 15th March 2025, I haven't deduct TDS yet.
In this case for two different rate. How to I deduct TDS and how many challan will be there two or one?
if two then, Am I liable to pay penalty of 1.5% on first 9 month (April to December) with 5% ? Or just simply calculate and pay challan without penalty?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211711 Points Posted on 17 January 2025

the tenant, being an individual or HUF, is not liable to get its accounts audited.
TDS is applicable when the rent paid exceeds ₹50,000 per month.
File single form 26QC, if TDS deducted in the last month.