The question
1 answer
Practising chartered accountants at ERPCA · 22 Jul 2026
In short
Not at this rent. From 1 April 2025 the threshold under section 194-I rose from ₹2.4 lakh to ₹6 lakh a year. ₹45,000 a month is ₹5.4 lakh, so no deduction is required and no TAN is needed for this payment.
Section 194-IB, the 5% (now 2%) deduction on rent above ₹50,000 a month, applies only to individuals and HUFs who are not liable to tax audit. A partnership firm is outside it, so it does not pull you back in either.
The position changes the month the rent crosses ₹50,000, or if you take a second premises from the same landlord that takes the annual total above ₹6 lakh. Then section 194-I applies to the whole year's rent at 10% (2% for plant and machinery), you need a TAN, you deposit the tax by the 7th of the following month, file Form 26Q each quarter and issue Form 16A to the landlord. Deduct on the rent excluding GST if the landlord is registered and shows GST separately.
Next step
Nothing to deduct now; note the ₹50,000 trigger in your compliance calendar and ask the landlord for PAN so you can act quickly if the rent is revised.
General guidance on the facts given, not an engagement. Law as on the date of the answer.
Talk to ERPCA about your case →Your situation is a little different?
Post it free. Practising professionals in tds / tcs compliance answer in writing, usually within 2–3 working days.
More questions people asked
All questions →Company / LLP registration
Solo founder: should I register a One Person Company or a private limited company?
1 Oct 2026
Insolvency & restructuring
A customer owes our MSME ₹18 lakh for seven months and keeps delaying. What are our legal options: MSME Samadhaan, IBC, or the 45-day rule?
23 Sep 2026
GST registration & returns
Restaurant with ₹90 lakh turnover: composition scheme or regular GST, and how do Swiggy and Zomato orders work?
24 Aug 2026