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TDS on Rent u/s 194I and 194IB (Income Tax)




Provisions and compliance under Income Tax Act, 1961

Key Points

Section 194-IB

Section 194-I

Applicability

Applicable to individuals and HUFs not liable to tax audit under Section 44AB of the Income Tax Act.

Applicable to all types of taxpayers, including in individuals, HUFs (Sec 44AB), companies, and others.

Type of Income

Rental income paid for the use of land, buildings, or both for residential purposes.

Rental income paid for the use of land, building, or both, whether residential or commercial and on Plant, Furniture etc

Threshold Limit

TDS to be deducted if the monthly rental payment exceeds Rs. 50,000.

TDS to be deducted if the annual rental payment exceeds Rs. 2,40,000.

Rate of TDS

5% of the total rental amount. (@2% w.e.f. 01/10/24).

10% of the total rental amount for land, building and on furniture and 2% on Plant, Machine etc.

Time of TDS Deduction

Once in the last month of the tenency or at the end of the financial year.

TDS to be deducted at the time of credit of rent to the landlord's account or payment, whichever is earlier.

TAN Requirement

TAN (Tax Deduction and Collection Account Number) not required for the deductor. (Form 26QC)

TAN is required for the deductor.


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