Avinash Jeevan Dsouza (Accounts Officer & In charge) (3294 Points)
18 February 2025Hello,
Could you please confirm if TDS needs to be deducted at 10% on hotel room rent if it exceeds ₹2,40,000 in the financial year 2024-25?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183179 Points)
Replied 19 February 2025
Under Section 194I of the Income Tax Act, 1961, TDS is applicable on payments for hotel accommodation if it is taken on a “regular basis,” which means rooms are earmarked or the hotel is legally obligated to provide rooms as per an agreement.
TDS under Section 194-I applies if the total rent paid or payable during the financial year exceeds ₹2,40,000. TDS at 10% on the rent paid. The limit has exceeded to Rs. 6 lakhs applicable for FY 2025-26 onwards,
CAclubindia
