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TDS on Rent Calculator

TDS on rent, which works differently for individuals and businesses. An individual tenant paying above a monthly threshold has to deduct, which surprises most people renting a home.

Also called: tds on rent 194i, rent tds calculator.

₹
Who is paying
%
%
₹
₹
TDS for the year
₹36,000

₹36,000 across the year at 5%, or ₹3,000 a month, on ₹7,20,000 of rent. Monthly rent is above the individual threshold, so deduction applies even though you are not a business.

Per month
₹3,000
Annual rent
₹7,20,000
Net paid to the landlord
₹6,84,000
Rate applied
5%
Whether it applies
Monthly rent is above the individual threshold, so deduction applies even though you are not a business.
How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

A business paying rent deducts at the higher rate once annual rent crosses the annual threshold. An individual not subject to audit deducts at a lower rate once monthly rent crosses a monthly threshold, and this obligation catches ordinary tenants who have no idea it exists. The individual case is deducted once a year rather than monthly, in the last month of the tenancy or the financial year.

TDS on rent = rent * rate, once the threshold for the payer type is crossed
R
Rent (currency)
r
Rate for the payer type (decimal)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

an individual above the monthly threshold

Monthly rent
₹60,000
Months in the year
12
Who is paying
Individual or HUF not under audit
Rate for individuals
5%
Rate for businesses
10%
Annual threshold for businesses
₹2,40,000
Monthly threshold for individuals
₹50,000

TDS for the year₹36,000

5% of 7,20,000, worked by hand

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a business pays the higher rate

Monthly rent
₹60,000
Months in the year
12
Who is paying
Business or audited entity
Rate for individuals
5%
Rate for businesses
10%
Annual threshold for businesses
₹2,40,000
Monthly threshold for individuals
₹50,000

TDS for the year₹72,000

boundary: the two regimes side by side

Open this example

below the individual threshold nothing applies

Monthly rent
₹40,000
Months in the year
12
Who is paying
Individual or HUF not under audit
Rate for individuals
5%
Rate for businesses
10%
Annual threshold for businesses
₹2,40,000
Monthly threshold for individuals
₹50,000

TDS for the year₹0

degenerate case

Open this example

Method and limits

What it assumes

  • Rent for land, building or furniture. Plant and machinery attracts a different rate.

What it deliberately does not model

  • Rates and thresholds change with each Finance Act. Enter the ones that apply to your year.
  • The individual mechanism requires no TAN but has its own filing form, which is a compliance step rather than a calculation.

Sources

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

I am an individual renting a flat. Do I really have to deduct?
If your monthly rent is above the threshold, yes. It applies to individual tenants without any audit requirement, and it is one of the most widely missed obligations in Indian personal tax.