Rent above ₹50,000 a month: 10% TDS
Summary
The tenant withholds 10% of rent, pays it to the tax department and gives the rest to the landlord (2% for plant and machinery). Set this up with your accountant from day one.
What to check
- Above ₹50,000 a month (₹6 lakh a year), the tenant must withhold tax.
- Withhold 10% for land, building and furniture, 2% for plant and machinery.
- Collect the landlord's PAN; without it a higher rate can apply.
- The old ₹2.4 lakh annual threshold no longer applies, so be wary of outdated guides.