Under the Table in section 393(1) of the Income-tax Act, 2025, an individual or HUF who is not a…

Under section 393(1) (Table: Sl. No. 2(i)) of the Income-tax Act, 2025 (formerly s.194-IB of the 1961 Act), a person other than a specified person must deduct tax at 2% on rent paid to a resident where the rent exceeds Rs. 50,000 for a month or part of a month. This covers an individual or HUF whose turnover from business did not exceed Rs. 1 crore, or whose gross receipts from profession did not exceed Rs. 50 lakh, in the preceding tax year (section 402(37)).

Under Note 1 to the Table, the tax is deducted once, on the rent for the last month of the tax year or the last month of the tenancy. Rs. 15,000, Rs. 25,000 and Rs. 40,000 per month are not thresholds under this provision. (The rate under s.194-IB was 5% until it was reduced to 2% from 1 October 2024.)