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TDS EXEMPTED LIMIT AND RATE ON RENT PAID BY A PARTNERSHIP FIRM

03 October 2023

How much tds to be deducted on office rent paid by a partnership firm to an individual.And what rent paid amount is exempted for deduction of tds .please tell me.

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N. A (JOB) (45 Points)
Replied 03 October 2023

The person (not being an Individual or HUF ) who is responsible for paying of rent is liable to deduct tax at source.
TDS threshold for deduction of tax on rent is Rs 2,40,000 for the FY 2022-23 (the threshold limit was Rs. 1,80,000 until FY 2018-19).
TDS on rent is required to be deducted at source at the time of credit of ‘income by way of rent’ to the account of the payee or at the time of payment, thereof, in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.
TDS on Rent paid for office Building is 10%

Hence you being a partnership firm should deduct TDS @ 10% on OFFICE RENT PAID u/s.194I(b). if above conditions satisfies.

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