Master in Accounts & high court Advocate
9615 Points
Posted on 20 December 2024
The tenant pays a total rent of ₹80,000, split equally between two family members, ₹40,000 each.
_TDS Applicability:_ As per Section 194-I of the Income-tax Act, 1961, TDS is applicable on rent payments exceeding ₹2,40,000 per annum
. _In this case:_ Since the rent payment to each individual is ₹40,000, which is below the threshold of ₹2,40,000
, TDS is not applicable.
_However:_ If the total rent payment of ₹80,000 were made to a single person, TDS would still not be applicable, as the threshold of ₹2,40,000 is not exceeded.
_Important Point:_ It's essential to note that TDS applicability can vary depending on individual circumstances.