Archive · 1 Dec 2025
TDS Deduction Rules for Rent Over Rs 50,000
If you pay more than Rs 50,000 per month as rent, the government will take out a small amount of tax from your rent payment.
This is called TDS, which stands for Tax Deducted at Source.
The tax rate is 2%.
This rule applies to individuals and families (HUFs) who earn less than Rs 1 crore from business or less than Rs 50 lakhs from their profession in the previous financial year.
The rule helps ensure that everyone pays their fair share of taxes.
TDS deduction of 2% applies to monthly rent exceeding Rs 50,000
Applicable to individuals and HUFs with business turnover below Rs 1 crore or professional income below Rs 50 lakhs
Deduction is mandated by Section 194-IB of the Income Tax Act
TDS is deducted at the time of rent payment
Applies to rent for land, building, or both
- Who
- Individuals and HUFs paying rent over Rs 50,000 per month
- What
- TDS deduction at 2% on rent payments
- When
- Applicable for rent payments exceeding Rs 50,000 per month or part of the month
- Where
- India
- Why
- As per Section 194-IB of the Income Tax Act
- Section
- 194-IB
- TDS Rate
- 2%
- Monthly Rent Threshold
- Rs 50,000
- Applicable To
- Individuals and HUFs
- Business Turnover Threshold
- Rs 1 crore
- Profession Income Threshold
- Rs 50 lakhs