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Is TDS applicable if monthly rent exceeds ₹50,000 but is split between joint owners?

balwant jain
By Balwant Jain

2 min read | Updated on June 29, 2026, 07:07 IST

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SUMMARY

Learn whether TDS under Section 194IB applies when rent is paid to two joint owners, and each receives less than ₹50,000 per month. Know the applicable threshold and tax rules.

TDS query

So, in case there are joint owners, the threshold for tax deduction payment to each of the joint owners shall be considered. | Image: Shutterstock.

When a rented property has more than one owner, tenants often wonder whether TDS needs to be deducted if the total monthly rent exceeds ₹50,000, but each co-owner receives less than that amount. The answer depends on how the threshold under the Income Tax Act is applied to joint ownership.

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Today's Q&A explains such details in response to a query by a reader.

**Question: Can you help with the TDS implications when the rent payer is one, and it is being split into two joint owners? The rent paid to each joint owner is below the threshold of 50,000 rupees per month. Will there be TDS deduction in this case, or is it not required to be deducted? **

Answer: Section 194IB of the Income Tax Act 1961 and its corresponding Section 393 of the Income Tax Act 2025 require an individual or an HUF, who is not otherwise required to deduct tax at source, to deduct tax at source @ 2% of rent if the monthly rent exceeds fifty thousand rupees.
The tax is required to be deducted from the rent payable for March of the financial year or for rent payable for the last month of the tenure of tenancy if the tenancy expires earlier.

The threshold of fifty thousand rupees applies to each payee of the rent, not to the amount of rent payable for the specific property.

So, if there are joint owners, the threshold for tax deduction payments to each joint owner shall be considered.

In case the payment to each of the joint owners does not exceed the threshold of fifty thousand rupees, the tenant is not required to deduct tax even if the aggregate monthly rent payable for the property is more than fifty thousand rupees.

Have a personal finance, mutual fund, or income tax query? We will try to get them answered by experts. Write to sangeeta.ojha@rksv.in
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Disclaimer: The views and opinions expressed above are those of respective experts/commentators and do not reflect the views of Upstox. The above Q&A is only for informational purposes and should not be considered investment or tax advice from Upstox. Please consult a tax expert for your complex tax problems.

About The Author

balwant jain
Balwant Jain is a Mumbai-based tax and investment expert.

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