Is TDS Deduction Applicable on Rent Payments of Exactly ₹50,000 per Month under HRA?

TDS & TCS TRACES
1

I have a query regarding the deduction of TDS on rent paid under the House Rent Allowance (HRA). According to the rules, TDS is required to be deducted on rent payments exceeding ₹50,000 per month. However, I have come across news articles, including this one from The Hindu, that suggest the rule applies to rent payments of ₹50,000 or more, which seems to include exactly ₹50,000. Can anyone please clarify if TDS needs to be deducted on a rent payment of exactly ₹50,000 per month? If so, what steps should I take to file the TDS return?

2

Hi @Aswin_K_V

As per the provision of the Income Tax Act 1961, TDS is applicable only on rent payments exceeding Rs. 50,000 a month or part of the month. Thus, TDS deduction is not required on exact 50,000.

Thanks,
CA. Pulkit Garg

1 Like