It's time to deduct TDS if rent exceeds Rs 50,000, say analysts

Applicable rate is 30% for non-resident landlords, 5% for rest

If you live on rent, you could be liable to deduct tax deducted at source (TDS) on the rent you pay to your landlord. That makes it imperative you understand your obligations and fulfil them on time.  

Mumbai-based tax and investment expert Balwant Jain says: “According to the income-tax (I-T) law, TDS on rent paid can be categorised into two parts — rent paid by a businessman and rent paid by an individual or Hindu Undivided Family (HUF).”

TDS on rent paid by a businessman is governed by Section 194I, while TDS on rent paid by an individual or HUF falls under