Tenants paying rent for business premises must deduct TDS under Section 194-I when rent exceeds the notified limits. This is separate from tenant TDS under Section 194-IB on residential rent.
What deductors should do
- Verify landlord PAN before first payment
- Deduct at the applicable rate for land, building, or plant & machinery
- Deposit tax and file Form 26Q each quarter
- Issue Form 16A to the landlord
Landlords should read our rental income tax guide. Deductors use TDS return filing support.
