TDS Deduction under section 194I

[Rajat Gupta]

If a Private Ltd. Co. has paid rent Rs. 30000 for May 2025 and from June onwards it is paying 90000 p.m. does the company liable to deduct TDS on 30000 also as per the new amended provision?

AI Summary

Company not liable for TDS on Rs. 30,000 May rent under amended Section 194I monthly threshold A private limited company paid Rs. 30,000 rent in May 2025 and Rs. 90,000 monthly from June onwards, questioning TDS liability under amended Section 194I. Tax experts clarified that the company is not liable to deduct TDS on the May payment of Rs. 30,000. The amended provision applies month-wise rather than annually, with TDS required only when monthly rent exceeds Rs. 50,000. The amendment operates prospectively from April 2025 without retrospective liability for months where rent was below the threshold.