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

  1. Summit Muradia

    What if there is joint ownership of property and rent paid is Rs. 30,000/- each to both the joint owners i.e. total rent of property is Rs. 60,000/-.

    Reply
  2. P. G.

    1) The tenancy is in Joint name of Wife (1st Name) and Husband (2nd name). The rent cheques are being paid from the HUF bank account.

    Should the TDS be paid by:
    – wife (1st holder)
    – wife and husband
    – HUF

    2) The tenancy is since 2016. So should the TDS be paid for the period from 1st June 2017 to 31st March 2018 ?

    Thank you

    Prakash G.

    Reply
  3. Maruthi Nilaya

    Who is liable to pay tax u/s 194IB either Land Owner or Tenent
    When Tenent is NRI what is the tax rate

    Reply

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