Paying Rent Above ₹50,000? Don’t Miss This Tax Rule!

Recently, a tech professional working at Uber reached out to me in panic

She had just received a tax notice. The reason?

She’d been paying ₹65,000 rent every month for 2 years… but never deducted TDS on rent.

What is TDS on rent:

🔔 Paying Rent Above ₹50,000? Don’t Miss This Tax Rule!

Many professionals pay high rent but miss a critical compliance step. If your monthly rent exceeds ₹50,000, you (the tenant) are required to:

✅ Deduct TDS @2% under Section 194-IB

✅ Deposit it via Form 26QC (online)

✅ Provide Form 16 to your landlord

TDS is deducted once a year (in March or at tenancy end).

Applies even if the landlord is a relative or senior citizen.

Non-compliance can lead to interest, penalty & notices from the tax department.

Don’t wait till year-end. Track your rent payments and complete the deduction on time—it saves you from unnecessary penalties later.