The threshold limit for deduction of TDS on Rent Payment under Section 194I of the Income Tax Act, 1961 has been increased from Rs. 1,80,000 to Rs. 2,40,000, applicable from FY 2019-20 and onwards, as proposed by Finance Minister Sh Piyush Goyal while presenting the Budget 2019.
TDS threshold for deduction of tax on rent has been increased from Rs. 1.8 Lacs to Rs. 2.4 lacs for providing relief to small taxpayers.
Section 194I of the Income Tax Act, 1961 has been amended vide Section 10 of the Finance Act 2019, as under:
“In section 194-I of the Income-tax Act, in the first proviso, for the words “one hundred and eighty thousand rupees”, the words “two hundred and forty thousand rupees” shall be substituted.”