Mr. Arvind has been running a sole proprietary business with turnover of 202 lakhs for the F.Y.2024-25. He pays a monthly rent of 25,000 for the…

Section 194-IB requires any person, being individual or HUF, other than those whose total sales, gross receipts or turnover from the business or profession exceeds 1crore in case of business and 50lakhs in case of profession, in the financial year immediately preceding the financial year in which such rent was credited or paid, responsible for paying to a resident any income by way of rent, to deduct income tax at the rate of 2%. Under this section, the tax has to be deducted at source only if the amount of such rent exceeds - 50,000 for a month or part of month during the previous year. In the given scenario, the amount of rent paid per month is 25,000 which does not exceed the threshold limit of 50,000 p.m. Hence, TDS shall not be deductible by Mr. Arvind.