25/02/2026
Withholding Tax Obligations on Rent for Individuals and AOPs
According to tax regulations, Individuals and Associations of Persons (AOPs) are required to deduct withholding tax under Section 155 when their annual rent payments reach or exceed Rs. 1.5 million. Reaching this threshold classifies them as a "prescribed person" for this specific clause.
It is important to note that this legal obligation is triggered by the total amount of rent paid during the year, rather than the mere act of entering into a tenancy agreement.
