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TDS on rent above ₹50,000: Is it applicable when rent is split between tenants?

balwant jain
By Balwant Jain

3 min read | Updated on April 30, 2026, 11:01 IST

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SUMMARY

TDS on rent above ₹50000 explained in case of joint tenants paying rent separately. Know when tax deduction at source is not applicable as per income tax rules and threshold limits for individual payers

TDS on rent above Rs 50000

Section 393 of the Income Tax Act 2025 require an individual or an HUF, who are not otherwise required to deduct tax at source @ 2% on rent if the monthly rent exceeds fifty thousand rupees. | Image: Shutterstock.

A taxpayer has sought clarification on whether Tax Deducted at Source (TDS) applies to monthly house rent exceeding ₹50,000 when the rent is shared among multiple individuals. In this case, the total rent is ₹60,000 per month for a jointly owned property, but each tenant contributes ₹20,000 separately.
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Today's Q&A explains such details in response to a query by a reader.

Question: I would like to seek your guidance regarding the applicability of TDS on house rent exceeding ₹50,000 per month. We have taken a residential property on rent at ₹60,000 per month. The property is jointly owned by a husband and wife. The rent is being paid by three individuals, myself, my wife, and my daughter, each contributing ₹20,000 per month through separate bank accounts. I would like to understand whether TDS provisions are applicable in our case?
Answer: Section 194B of the Income Tax Act 1961 and its corresponding Section 393 of the Income Tax Act 2025 require an individual or an HUF, who are not otherwise required to deduct tax at source @ 2% on rent if the monthly rent exceeds fifty thousand rupees. The tax is required to be deducted from the rent payable for the month of 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 is applicable with respect to each payer of the rent and not with respect to the amount of rent payable for the specific property.

Since the rent payable by each of the joint tenants does not exceed fifty thousand rupees, you are not required to deduct tax for the payment of rent.

As the rent is being paid from the bank account of each of the joint tenants, it is beyond doubt that the rent payable by each of the joint tenants is less than the threshold limit applicable for deduction of tax at source.

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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