TDS on Rent Revised – Effective April 1, 2025!


🏠 TDS on Rent Revised – Effective April 1, 2025!

Starting from April 1, 2025, the rules for deducting Tax Deducted at Source (TDS) on rent payments have undergone a significant revision under Section 194-I of the Income Tax Act.

🔄 What’s Changed?

📌 Previous Rule (Before April 1, 2025):
TDS was applicable if the annual rent payment exceeded ₹2.4 lakhs (₹2,40,000). This meant tenants needed to deduct TDS only if their yearly rent crossed this limit.

📌 Revised Rule (From April 1, 2025):
Now, TDS under Section 194-I will be applicable only if the monthly rent exceeds ₹50,000.
➡️ This simplifies the process and removes the burden from tenants paying lower monthly rent amounts.

✅ Impact of the Change

  • Ease of compliance: Tenants paying under ₹50,000 per month no longer need to track annual rent thresholds.

  • Reduces administrative hassle for salaried individuals, students, and small businesses renting residential or office spaces.

  • Clear-cut threshold helps avoid confusion and unintentional non-compliance.

🧾 Who Should Be Aware?

  • Tenants paying rent for residential or commercial properties

  • Property owners receiving rent above ₹50,000 per month

  • Landlords who may now see TDS deductions earlier than before

  • Salaried individuals managing their own rent deductions

📊 Example:

If you're paying ₹45,000 per month in rent (i.e., ₹5.4 lakhs annually), no TDS is applicable anymore under the revised rules. But if you're paying ₹52,000 per month, TDS will be applicable every month, deducted by the tenant.

🧠 Need Expert Help with TDS on Rent?

At Taxla Services, we offer personalized tax consulting, including:

  • TDS return filing

  • Tenant-landlord TDS calculations

  • Section 194-I compliance

  • PAN/TAN assistance for rent-related deductions

📍 Visit us at Saligramam, Chennai
📞 Contact us today: +91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

Stay compliant. Stay stress-free. Choose Taxla Services for expert tax solutions.

#TDSUpdate #RentTDS #Section194I #TDSonRent #TaxlaServices #IncomeTaxIndia #TenantTips #TaxCompliance #ChennaiTaxConsultants #BestAuditorInTamilnadu




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