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- (Q.1)What is TDS on Rented Property u/s 194IB?
- The Finance Act, 2017 has introduced section 194-IB providing that Tenant of a property making monthly rent payment exceeding Rs 50,000/- is required to deduct tax at the rate of 5% from the rent payable to a resident landlord.
Note :- From 1st October, 2024 onwards the rate has been revised 2% from 5%. - Form 26QC is the challan-cum-statement for reporting the transactions w.r.t TDS deduction on rent on property under section 194-IB of the Income-tax Act, 1961. Tenant can file Form 26QC through Income tax portal website (www.income tax.gov.in).
- The tenant of the property being an individual or HUF (other than those referred in the second proviso to section 194-I) would have to deduct TDS and file Form 26QC.
- Tenant can file Form 26QC through Income tax portal website (www.income tax.gov.in).
- The due date of payment of TDS on rent is 30 days from the end of the month in which the deduction is made.
Example: If a taxpayer has made tax deduction from payment of rent in the month of November 2024, then corresponding TDS should be deposited on or before thirty days from the end of the month of November 2024 i.e., December 30th, 2024. - Yes, Tenant can file Form 26QC if PAN of Landlord is not available. Tenant needs to mention PAN as PANNOTAVBL and applicable tax rate will be 20%.
- In case Form 26QC filed on NSDL-Please contact NSDL to get the print of Form 26QC and Acknowledgement Number. Contact Number: 02027218080.
In case Form 26QC filed on E-Filing portal - Form 26QC and Acknowledgement Number can be downloaded from the option available under E-Pay tax at E-Filing login.
