Rent Above 50000 TDS Rules: If your monthly rent is Rs 50,000, then paying just the rent will not be enough, but you will also have to fulfill a new responsibility related to tax. According to the rules applicable from 2026, under Section 194-IB, the tenant will have to deduct TDS.
This means that now this responsibility will have to be fulfilled not by the landlord but by the renters. Let us know about this new change…
This change happened in the rules
If your rent is more than Rs 50,000 per month, now you will have to pay 2 percent TDS on the total rent for the entire year. This amount is usually deposited together at the end of the year, i.e. in March.
For example, if you pay rent of Rs 75,000 every month, it amounts to Rs 9 lakh in a year. At the rate of 2 percent, TDS of Rs 18,000 is made on this. It may seem difficult to pay so much money with rent at one go. Make your preparations keeping this thing in mind so that you do not face any problems in the future.
Ignoring TDS rules can be costly
It would not be right to take this rule lightly, because if TDS is not deducted on time then the responsibility will fall on the tenant. In such a situation, additional penalty and interest may be imposed on you by the Income Tax Department. Therefore, it is important that this process is completed at the right time.
After deduction in March, it has to be deposited within 30 days i.e. by 30th April. It is also necessary to fill Form 26QC. After this the landlord has to give Form 16C. So that it can be ensured that the entire process is completed correctly.
Salaried people may face problems
The biggest problem for many employed people is that they have to adjust TDS for the entire year at once. Due to which financial pressure may suddenly increase. Also, it is important to discuss this matter with the landlord beforehand. So that any kind of problem can be avoided.
Also read: Goodbye Income Tax Act 1961: What was left out and what was new added in the new Act 2025? 5 big changes
