TDS on Rent Payment on Flats

TDS on Rent Payments on Flats is to be deducted mandatory by the Tenants/Licensee under a leave and license agreement in Mumbai.

TDS on Rent Payment is quiet a recent thing and there are a lot of defaults seen in this Section due to ignorance by both the Owners and the Tenants.

TDS is to deducted by the Licensee who is renting an apartment/flat or a house by a Company @10% and by Individual Licensee should be 5% of the monthly rent amount if the rent is exceeding Rs.50000/- per month by Individuals who are not liable for Tax Audit.

In Mumbai most of the apartments in Bandra - Juhu - South Mumbai - Powai etc are above Rs.50000/- rent so its important that both the Owners and the Licensee (Tenants) understand this provision of law and there are no defaults on this.