TDS on Rent for Flat given on L&L basis

I have a Flat in Mumbai, occupied on L&L basis, by 2 individuals, each of whom is paying Rs 40,000/- p.m. as rent.

Query:

1) Do they need to deduct 5% towards TDS from the rental amount? 

2) If TDS is to be deducted, does it have to be done every month, or can the entire TDS be deducted and deposited in the last month of the FY?

Appreciate advise. 

Replies (4)
Quick Summary
This discussion clarifies whether TDS needs to be deducted on rent for a Mumbai flat occupied on a Leave and License (L&L) basis by two individuals. Each tenant pays £40,000 per month. The consensus is that TDS is not required as the individual monthly rent is below the £50,000 threshold specified under Section 194IB of the Income Tax Act. If TDS were applicable, it would be deducted and deposited in the final month of the financial year or tenancy.

I am assuming the rent agreement has your name as landlord and the other 2 individuals named as tenants.

1. TDS not required as the individuals are paying less than 50000 Rs a month.

2. Entire TDS shall be deducted and deposited in the last month of the financial year or the last month of tenancy whichever arises first.

As mentioned above, each of the tenant is paying you a rent of Rs. 40,000 per month. TDS u/s 194IB is applicable when the monthly rent is more than Rs. 50,000

 

Thank you Sir, for the clear reply.

Thank you Ma'am for the reply.

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