Notes
( RENTING, ANSWERED · 1 OCT 2026 · UPDATED 1 OCT 2026 · 1 MIN )

Do I deduct TDS on my rent?

Only if you are an individual or a Hindu Undivided Family paying more than ₹50,000 a month in rent to a resident landlord, and you are not otherwise required to get your accounts audited.

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If that applies to you, deduct tax at 2 percent before you pay the rent, and deposit it against your landlord's PAN. This provision now sits in the new Income-tax Act, 2025, effective from 1 April 2026, in place of the old Section 194-IB. If your landlord has no PAN, the rate jumps to 20 percent, so ask for it well before your rent crosses the threshold.

01

The number

TDS of 2% if monthly rent exceeds ₹50,000, individual or HUF tenant not under tax audit; 20% if landlord has no PAN; now under the Income-tax Act 2025 (effective 1 April 2026), formerly Section 194-IB.

02

Sources

Where it comes from. Level 1 is a government or court page, level 2 established press, level 3 a portal's explainer, which gives only what is commonly quoted.

  • Income Tax Department, FAQs on Transition to the Income-tax Act 2025, https://www.incometaxindia.gov.in/documents/81799/11848482/FAQs-on-Interplay-and-Transition.pdf/05f80c1a-073c-a5d7-fb6f-55509242be53?t=1774082865717, level 1
  • Deccan Herald, https://www.deccanherald.com/business/centre-notifies-income-tax-act-2025-law-to-come-into-effect-from-april-1-2026-3693171, level 2
( THE NUMBER )

TDS of 2% if monthly rent exceeds ₹50,000, individual or HUF tenant not under tax audit;

TDS of 2% if monthly rent exceeds ₹50,000, individual or HUF tenant not under tax audit; 20% if landlord has no PAN; now under the Income-tax Act 2025 (effective 1 April 2026), formerly Section 194-IB.

Every number on this page is dated, and its source is named beside it. The law is what the statute says; the practice is what Bengaluru does, and where the two differ, both are written down.

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