Question

The obligation to deduct TDS shall arise only if the amount paid as rent exceeds :

• A. ₹ 60,000
• B. ₹ 90,000
• C. ₹ 1,20,000
• D. ₹ 1,80,000

Hint:

Recall Section 194-I and the yearly rent limit given in the textbook. Rent below that limit needs no TDS.

Answer 1

The Correct Option is D

Step 1: Identify the section:
TDS on rent is covered by Section 194-I of the Income Tax Act. It applies when a person pays rent to a resident.

Step 2: Recall the threshold:
TDS has to be deducted only if the rent paid in a financial year is more than a fixed limit.
As per the CBSE Taxation textbook, this limit is ₹1,80,000 a year.

Step 3: Check the options:
(A) ₹60,000 is below the limit, so no deduction is needed on this basis.
(B) ₹90,000 is also below the limit.
(C) ₹1,20,000 was an older limit and is not the limit given in the textbook.
(D) ₹1,80,000 matches the textbook limit. So (D) is correct.

Step 4: Practical remark:
Later Finance Acts have raised this limit, so check the latest figure before you file a real return. The question follows the textbook, and only option (D) fits it.

Final Answer:
TDS on rent is deducted only when the rent exceeds ₹1,80,000 in the year. This is option (D).