FreeComplianceTDS on rent paid by a company
If your company rents an office, warehouse or equipment, it must deduct TDS on rent once payments cross the threshold. The rate depends on what is being rented.
Rates
| Rented asset | TDS rate |
|---|---|
| Land, building or furniture | 10% |
| Plant, machinery or equipment | 2% |
TDS applies only when rent to a payee exceeds ₹50,000 for a month or part of a month.
Practical points
- Deduct at the time of credit or payment, whichever is earlier, including advance rent.
- Refundable security deposits are not rent and do not attract TDS.
- If GST is shown separately on the rent invoice, deduct TDS on the amount excluding GST.
- Maintenance charges billed separately by a society or agency may fall under contractor TDS instead.
- Collect the landlord's PAN; without it, TDS is at a higher rate.
Frequently asked questions
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
- TDS due dates for companies: deposit, returns and certificates
When companies must deposit TDS, file quarterly TDS returns, and issue TDS certificates (Form 130 and 131, formerly 16 and 16A), with late fees and interest.
- TDS on salary vs professional fees: employee or consultant?
How TDS differs for salaried employees and professionals or contractors, rates and thresholds, and how to classify payments correctly.
- Registered office proof and NOC for company registration
What proof of registered office MCA accepts, how to write the owner's NOC, and how to use a home, rented or co-working address for your company.