TDS on Rent on joint property

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INSURANCE AGENT & ACCOUNTANT-PART TI

49 Points Joined February 2012

Hello,

Is TDS applicable on Rent on joint property if the individual share is less than Rs.50,000/- per month.

We are paying Rent on a shop owned by 5 persons . The Total monthly Rent is Rs.200000/- but the individual Rent

is Rs.40,000 per month.

In another case the total monthly rent is Rs. 1,30,000. Rs.90,000/- is paid to one person and Rs.40,000 to the second person.

Both are joint owners. Is TDS applicable on both the persons or only on the one who is getting Rs.90,000.

Thanks and Regards

Mohanan V P

Replies (2)

SEO Sai Gr. Hosp.

197895 Points Joined July 2016

If the monthly rent received by any individual co-owner exceeds Rs 50,000, TDS is required to be deducted only on that co-owner’s share.
Conversely, if each co-owner’s individual share is Rs 50,000 or less per month, then no TDS is required under Section 194-IB, even if the total rent for the whole property exceeds Rs 50,000 per month.
The law specifically applies the threshold separately to each joint owner, so TDS liability depends on the amount paid to each person/owner—not the aggregate.