TDS on Rent (Section 194-IB): When Tenants Must Deduct Tax

Fri, 05 Jun 2026 09:15:00 +0530

Tax Deducted at Source (TDS) on rent is one of the most commonly overlooked tax compliance obligations for tenants in India. If your monthly rent exceeds Rs 50,000, you are legally required to deduct a portion of the rent as tax before paying your landlord and deposit it with the government. Failure to comply exposes you to interest charges, penalties, and the risk of being treated as an “assessee in default” by the Income Tax Department.

Section 194-IB on Mittiyo

TDS on Rent (Section 194-IB): When Tenants Must Deduct Tax