The Complete Guide to TDS on Rent Payments in Mumbai

Introduction:

Tax Deduction at Source (TDS) on rent payments is mandatory for tenants/licensees renting properties under leave and license agreements in Mumbai.

The Complete Guide to TDS on Rent Payments in Mumbai featured on Ghar aims to help you in the best possible manner:

TDS on Rent: Rules Until 2023

As per Section 194-I of the Income Tax Act, rent payers must deduct 10% TDS on payments for buildings or land if the annual rent exceeds ₹2,40,000.

For individuals and Hindu Undivided Families (HUF), 5% TDS is applicable on monthly rent exceeding ₹50,000.Tenants and owners must ensure compliance to avoid penalties and legal consequences.

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