Rent withholding differentiates deductors, asset classes, and deduction timing within the proposed income-tax compliance framework.

Rent payments to residents under section 393(1), Table serial number 2, are subject to tax deduction where rent exceeds Rs. 50,000 for a month or part of a month. Persons other than specified persons deduct TDS at 2 per cent only in the last month of the tax year or tenancy. Specified persons deduct tax at the earlier of credit or payment, at 2 per cent for machinery, plant or equipment and 10 per cent for land, buildings, furniture or fittings.

---

---

---