NO TDS on Rent if monthly rent upto Rs. 50000 [Budget 2025]:

NO TDS on Rent if monthly rent upto Rs. 50000 [Budget 2025] Section 194-I of the Act requires that any person, not being an individual or a Hindu undivided family (HUF), who is responsible for paying to a resident any income by way of rent, shall deduct income-tax at the rates as specified therein, only when the amount of such rental income exceeds Rs. 2,40,000/- in a financial year. It is proposed to increase this threshold amount of income by way of rent for requirement of deduction of tax at source under section from Rs. 2,40,000/- in a financial year to Rs. 50,000/- in a month or part of a month.

Amendment of Section 194-I:

Some illustrations are given below for better understanding:

TDS u/s 194I
Rent	Occupany (In Months)	Monthly Rent	Yearly Rent	TDS
Case 1	12	40000	480000	Not Applicable
Case 2	12	50000	600000	Not Applicable
Case 3	5	120000	600000	Applicable
Case 4	2	55000	110000	Applicable
Case 5	1	55000	55000	Applicable

This amendment will take effect from the 1st day of April 2025.