What is Consequences of not deducting TDS on rent (Section 194-I)?
Nexa Consultancy | Startup & Finance Glossary
If a business paying rent exceeding ₹2,40,000 per year fails to deduct TDS, it faces disallowance of 30% of the rent expense, plus interest and penalties for non-deduction.
Startup Example: A startup pays office rent of ₹50,000 per month but doesn't deduct TDS. It risks having ₹1,80,000 (30% of ₹6 Lakhs annual rent) disallowed as an expense.
Our bookkeeping services flag all TDS-applicable payments.