New Delhi, July 3 -- Many tenants presume that if a property's monthly rent exceeds Rs.50,000, they must deduct TDS (Tax Deducted at Source). This is true, but when a property is jointly owned, the Rs.50,000 threshold applies per co-owner's share, not on the total rent.

In accordance with Section 194IB of the Income Tax Act, 1961 and its corresponding Section 393 of the Income Tax Act, 2025, an individual or a Hindu Undivided Family (HUF), who is not otherwise liable to deduct TDS, must deduct TDS at 2% if the monthly rent paid to a landlord exceeds Rs.50,000. The TDS rate was 5% before 1 October, 2024.

For example, if an individual owner receives rent of Rs.50,000 or more per month from a let-out property, the tenant is liable to deduc...