TDS on Rent: Section 393 Complete Guide#
What is Section 393?#
TDS on rent payments to landlords.
TDS Rates#
- With PAN: 2%
- Without PAN: 20%
Threshold Limit#
- ₹2,40,000 per year
- ₹20,000 per month
When to Deduct?#
- Credit to landlord's account
- Payment in cash/cheque/online
Landlord's Rights#
- Provide PAN to tenant
- File ITR
- Claim credit in ITR
Tenant's Duties#
- Deduct TDS
- Deposit by 7th of next month
- Issue TDS certificate
If No PAN#
- Higher TDS rate (20%)
- Landlord to apply for PAN
Conclusion#
TDS on rent ensures tax collection.