No, the landlord is not bound to deduct TDS (Tax Deducted at Source) on rental income of ₹40,000 per month given for household (residential) use in India.
According to Section 194IB of the Income Tax Act, TDS is only required to be deducted by the tenant if the monthly rent paid exceeds ₹50,000. The obligation for TDS deduction does not apply for rent payments below this threshold, whether the use is residential or commercial.
So, for a monthly rent of ₹40,000, there is no requirement for the landlord or the tenant to deduct TDS under current Indian tax laws.