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TDS on Rent on joint property

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MOHANAN .V.P.

INSURANCE AGENT & ACCOUNTANT-PART TI

43 Points Posted on 24 August 2025

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 (5)

Quick Summary

This discussion clarifies the rules for deducting Tax Deducted at Source (TDS) on rent for jointly owned properties. The key point is that the Rs. 50,000 monthly threshold for TDS applies to each individual owner's share, not the total rent collected for the property. Therefore, if an individual owner's share of the rent is Rs. 50,000 or less per month, no TDS is required on their portion, even if the total rent for the property exceeds the limit. TDS is only applicable if a single owner receives more than Rs. 50,000 monthly.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 24 August 2025

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.