INCOME TAX5 Sept 2026
Paying over ₹50,000 rent per month? Here's what tenants must do to avoid income tax penalty, interest | Mint
Do you pay rent over ₹50,000 a month? Then you must deduct 2% Tax Deducted at Source (TDS) before paying your landlord. This applies to individuals and HUFs, even salaried employees. Deduct it once a year in the final month. Deposit it with the government promptly – your landlord can claim it as credit. Delay attracts interest, late fees and penalties.
Key Statutory Highlights
- Tenants paying more than ₹50,000 rent per month must deduct 2% TDS before paying their landlord.
- This applies to individuals and HUFs not required to audit, including salaried taxpayers.
- TDS is deducted once a year, deposited using Form 26QC, and interest or penalties apply for delays.
Actionable Advice for Taxpayers / Founders:If you rent property for over ₹50,000 a month, check whether you are already deducting 2% TDS. If not, start deducting it in the last month of the year or tenancy and deposit it on time to avoid interest and penalties.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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