Section 194IB - Payment of rent by certain Individual or HUF (as amended by Finance Act 2025)

• Applicability

Any person being an Individual or HUF (other than those Individual or HUF whose last year turnover is more than Rs. 1 crore in case of business or Gross receipt is more than Rs. 50 lakhs) who is responsible for paying rent to a resident person is required to deduct TDS, if amount of rent exceeds Rs. 50,000 per month or part of the month.

• Rate of TDS

2% of amount of rent

• Time for deducting TDS

At the time of credit of rent for the last month of Previous year to the account of payee or at the time of payment whichever is earlier.