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.