tds

TDS on Rent: Section 194I Complete Guide

Understanding TDS on rent payments under Section 194I including rates, threshold, and compliance for landlords and tenants.

GetYourCA Team
1 April 2025·Updated 9 April 20261 min read12.5K views
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TDS on Rent: Section 194I Complete Guide

What is Section 194I?#

TDS on rent payments to landlords.

TDS Rates#

  • With PAN: 2%
  • Without PAN: 20%

Threshold Limit#

  • ₹2,40,000 per year
  • ₹20,000 per month

When to Deduct?#

  • Credit to landlord's account
  • Payment in cash/cheque/online

Landlord's Rights#

  • Provide PAN to tenant
  • File ITR
  • Claim credit in ITR

Tenant's Duties#

  • Deduct TDS
  • Deposit by 7th of next month
  • Issue TDS certificate

If No PAN#

  • Higher TDS rate (20%)
  • Landlord to apply for PAN

Conclusion#

TDS on rent ensures tax collection.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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