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For tax year 2026-27, what is the threshold for deduction of tax on rent for land or a building paid by a specified person to a resident under section 393(1) of the Income-tax Act, 2025?

Question and options

For tax year 2026-27, what is the threshold for deduction of tax on rent for land or a building paid by a specified person to a resident under section 393(1) of the Income-tax Act, 2025?

  1. ₹2,40,000 for the tax year as a whole

  2. ₹50,000 for a month or part of a month

  3. ₹30,000 for a month or part of a month

  4. ₹1,80,000 for the tax year as a whole

Answer and explanation

Correct answer: B - ₹50,000 for a month or part of a month

Item 2(ii) of the Table in section 393(1) applies a threshold of ₹50,000 for a month or part of a month to rent paid by a specified person, with tax at 10% for land or buildings and 2% for plant or machinery. The 2025 Act sets no annual threshold for rent: the monthly rent is compared with ₹50,000.

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