Government Proposes Higher TDS Threshold on Rent from 2.4 lakhs to 6 lakhs.

Increased TDS Limit on Rent

The annual threshold for TDS on rent will be raised from ₹2.4 lakh to ₹6 lakh.
Announced by the Finance Minister on February 1, 2025, during the Union Budget.

Relief for Small Taxpayers

Fewer rental transactions will be subject to TDS.
Beneficial for small taxpayers receiving lower rental income.

Amendment to Section 194-I of the Income Tax Act

Previously, TDS applied when annual rent exceeded ₹2.4 lakh.
New rule: TDS will now apply only if monthly rent exceeds ₹50,000.
Applicable to non-individuals and HUFs paying rent to a resident.

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