Section 194IB – TDS on Rent (for Individuals & HUF)

Effective from 1st June 2017, individuals & HUF not covered under tax audit have been subjected to deduct tax at source for rent payments if it is Rs. 50,000 or more per month.

Salient features:

  • Applicable only to individuals & HUF who are not under tax audit (under section 44AB)
  • This section is applicable from 1st June 2017
  • Tax Account Number (TAN) not required for the deductor
  • Applicable to monthly Rent of Rs. 50,000/- or above
  • TDS @ 5% if rent receiver is holding PAN, or otherwise TDS would be @ 20%
  • Deduction of Tax is to done in the last month of previous year (i.e. March) or in the month when the premises is vacated
  • Deposit to be made within 30 days from the end of month when tax was deducted. As an illustration, if deduction was in March, it should be deposited by 30th April or if deduction was in December, it should be deposited by 30th January
  • The deducted tax is to be deposited in the newly introduced Form No. 26QC through electronic means to one of the authorized banks
  • TDS Certificate (Form 16C) downloaded from TRACES is to be issued

Relevant resources:

Section 194IB

Notification dated 8th June 2017 with formats of Form No. 26QC & Form No. 16C

What is form26QC?

What is form 16C?

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Due date for issuance of TDS certificates for Q3 of FY: 2019-20

Due date for issuance of TDS certificates for Q3 of FY: 2019-20 – 15th February, 2020

Note: The above is applicable for deductors other than the Office of the Government

Delay in requesting certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted.

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7th February – due date for TDS & TCS payment for January

7th February, 2020 is the due date for TDS and TCS payments for the deductions made in January 2020. Make sure to do the needful on time to avoid interest. To understand the details / calculations for late payment interest click on the links below.

Calculation of Late Payment Interest

Interest on Late Payment of TDS

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Due date for filing of TDS returns for Q3 of FY: 2019-20 – 31st January

31st January – due date of filing TDS Returns for FY: 2019-20, Quarter 3 (Oct – Dec)

Filing of TDS Returns for the quarter ended December 2019 (FY:2019-20 Quarter 3) is already under way since 1st January, 2020.

Basic provisions relating to due date for payment of TDS

Sections under which interest for various delays/ defaults need to be paid

 

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