TDS RATES EFFECTIVE FROM 01-10-2024

As of October 2024, significant changes have been implemented regarding Tax Deducted at Source (TDS) on rent payments in India:

1. Residential Property Rent (Section 194IB):

• The TDS rate for individuals and HUFs not subject to tax audit has been reduced from 5% to 2% for monthly rent exceeding ₹50,000.

• TDS must be deposited using Form 26QC within 30 days after the end of the month when rent is credited or paid.

• A TDS certificate (Form 16C) must be issued to the landlord within 15 days of filing .

2. Commercial Property Rent (Section 194I):

• For commercial properties, the TDS rate remains at 10%, applicable if the annual rent exceeds ₹2,40,000. Deductors in this category require a TAN (Tax Deduction and Collection Account Number) .

These changes aim to ease the compliance burden on tenants and provide better cash flow for landlords. For more detailed guidance, consulting a tax advisor is recommended.