I am paying Rs. 80,000 rent per month. There are 2 landlords and each landlord's share is Rs.40,000. Do I need to deduct TDS on Rent paid u/s 194IB ? Does the section mention anywhere whether the limit is per property or per PAN ?
Also, please note - the 40,000 share of rent is not mentioned in the registered agreement.
Since the rent payable to each landlord (₹40,000) does not exceed ₹50,000 per month, you are not required to deduct TDS under Section 194-IB. The threshold limit of ₹50,000 per month is per PAN (per landlord), not per property. If the property was owned by one person and you paid them ₹80,000, you would have to deduct TDS.
According to income tax principles, if the agreement is silent on the specific share of each co-owner, it is assumed that the co-owners have equal shares in the property and, consequently, equal shares in the rental income. Since your calculation is based on equal shares (₹40,000 each), this holds true.
Note: To avoid any future disputes with the tax authorities, it is highly recommended to have a supplementary agreement or a clause in the main agreement specifying the ownership ratio.
Under Section 194IB, the Rs 50,000 monthly threshold applies to the total rent you pay, not per owner. So if you are paying Rs 60,000 per month for a jointly owned property, TDS is required on the full amount. When filing Form 26QC, you can attribute the payment proportionally to each owner based on their ownership share.
The TDS rate is 2% from June 1, 2025 onwards following the Finance Act 2025 amendment. This guide covers the full 194IB rules including how to handle joint ownership: https://taxgarden.in/blog/tds-on-rent-section-194i-194ib-india-ay-2026-27
YOGESH KAPOOR AND ASSOCIATES
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