TDS on House Rent — Section 194-IB (Individuals) Guide
Updated: 3 June 2026 | Income-tax Act 2025 | Rate: 2% | No TAN Required
If you pay house rent ≥ ₹50,000 per month, you must deduct TDS at 2% (Section 194-IB). No TAN needed — just PAN of landlord. File Form 26QC on the income tax portal. Issue Form 16C to the landlord. Companies/firms use Section 194-I (10%, ₹2.4L annual threshold, TAN required).
₹50K/mo
Monthly rent threshold for TDS under Section 194-IB — applicable to individuals and HUF tenants.
TDS rate: 2% (effective FY 2024-25, reduced from earlier 5%). No TAN required. File Form 26QC on incometax.gov.in.
TDS rate: 2% (effective FY 2024-25, reduced from earlier 5%). No TAN required. File Form 26QC on incometax.gov.in.
Section 194-IB vs Section 194-I — Comparison
| Parameter | Section 194-IB (Individuals/HUF) | Section 194-I (Companies/Firms) |
|---|---|---|
| Who must deduct | Individual/HUF tenant | Companies, firms, AOP, BOI |
| Threshold | Monthly rent > ₹50,000 | Annual rent > ₹2,40,000 |
| TDS rate | 2% (FY 2024-25 onwards) | 10% (building/furniture/fittings) |
| TAN required | No | Yes |
| Challan form | Form 26QC (one-time/annual) | Challan 281 (monthly) |
| TDS certificate | Form 16C | Form 16A (from TRACES) |
| When to deduct | Last month of tenancy or financial year | At time of each payment/credit |
| Return filing | Form 26QC is itself the return | Quarterly TDS return (Form 26Q) |
Step-by-Step: How to Pay TDS on Rent (Section 194-IB)
| Step | Action | Details |
|---|---|---|
| 1 | Determine TDS amount | 2% × total rent for the year (or period) |
| 2 | Visit incometax.gov.in | No login required for Form 26QC |
| 3 | Select e-Pay Tax → Challan 26QC | TDS on Rent of Property |
| 4 | Enter tenant PAN + landlord PAN | Both mandatory; wrong PAN → higher TDS |
| 5 | Enter rent period, monthly rent, total amount | Annual or one-time |
| 6 | Pay TDS online | Net banking / UPI / credit card |
| 7 | Download Form 16C | From TRACES after 10-15 days |
| 8 | Give Form 16C to landlord | Within 15 days of downloading |
Frequently Asked Questions
What is the TDS rate on house rent paid by individuals?
For individuals and HUFs paying house rent: Section 194-IB applies when monthly rent > ₹50,000. TDS rate: 2% of total rent paid (effective from FY 2024-25 — reduced from 5%). TDS is deducted once per year (at time of last month rent or vacation/termination). No TAN required for individuals/HUF under Section 194-IB. Form 26QC is the challan cum return for depositing this TDS. Form 16C (TDS certificate) must be issued to landlord. Deadline: TDS deposit within 30 days from end of month (July 31 for June deduction, etc.).
What is the TDS threshold for house rent?
Section 194-IB threshold: ₹50,000 per month (not annual). If monthly rent is ₹50,000 or more — TDS at 2%. If monthly rent is ₹49,999 or less — no TDS under 194-IB. This threshold is per-month, not annual. So ₹6 lakh per year (₹50K/month) triggers TDS. Joint tenants: if two individuals share a flat and each pays ₹30K rent — each person pays below ₹50K/month, so no TDS per person. However, if paying to a landlord on behalf of another, total payment determines threshold. For companies/firms paying rent: Section 194-I applies with ₹2.4 lakh annual threshold and 10% TDS rate.
How to deposit TDS on house rent without TAN?
Individuals and HUFs (Section 194-IB) do NOT need TAN. Steps: (1) Calculate TDS: 2% of total annual rent. (2) Go to incometax.gov.in → e-Pay Tax. (3) Select Challan 26QC (TDS on rent of property). (4) Enter PAN of both tenant (deductor) and landlord (deductee). (5) Enter rent details and payment amount. (6) Pay via net banking/UPI/credit card. (7) Download Form 16C (TDS certificate) from TRACES within 15 days. (8) Give Form 16C to landlord — they use it to claim TDS credit in their ITR. Failure to deduct TDS: interest 1%/month for late deduction + 1.5%/month for late deposit.
Does the landlord pay tax on rent received even if TDS is deducted?
Yes — TDS is just an advance tax payment on behalf of the landlord. Landlord must: (1) Declare rental income in ITR under "Income from House Property" or "Income from Other Sources" for commercial rent. (2) Apply standard deduction of 30% on net annual value (NAV). (3) Deduct home loan interest under Section 24(b) if applicable (no cap for let-out property). (4) Credit the TDS deducted by tenant when computing final tax. (5) If TDS > tax liability, landlord gets refund. The landlord can verify TDS credit in Form 26AS / AIS on incometax.gov.in before filing ITR.
What happens if TDS on rent is not deducted?
Consequences of not deducting TDS on rent (Section 194-IB): Interest under Section 201(1A): 1% per month from date TDS was due to date of deduction + 1.5% per month from deduction to deposit. Penalty under Section 271C: up to 100% of TDS amount not deducted. Short deduction: same interest applies on shortfall. However, under Section 194-IB, individual tenants have some protection — if landlord pays tax themselves before assessment, the interest burden on the tenant may be reduced. Form 26QC is mandatory — even a single annual payment must be reported. If not filed: ₹200/day penalty under Section 234E + late fee.
Related Pages
◆ Available in 71 Cities
Tds On Rent Of House Near You
Expert CA/CS assistance for tds on rent of house across India. Click your city for local details.
→
New Delhi
→
Mumbai
→
Bengaluru (Bangalore)
→
Hyderabad
→
Chennai
→
Kolkata
→
Pune
→
Ahmedabad
→
Noida (UP)
→
Gurgaon (Gurugram)
→
Jaipur
→
Lucknow
→
Chandigarh
→
Surat
→
Kochi (Cochin)
→
Faridabad
→
Ghaziabad
→
Greater Noida
→
Panipat
→
Sonipat
→
Manesar (IMT)
→
Dharuhera
→
Mathura
→
Palwal
→
Agra
→
Kosi Kalan
→
Aligarh
→
Khair
→
Jewar (Noida International Airport)
→
Kanpur
→
Varanasi (Kashi)
→
Prayagraj (Allahabad)
→
Meerut
→
Bareilly
→
Moradabad
→
Gorakhpur
→
Firozabad
→
Saharanpur
→
Muzaffarnagar
→
Bulandshahr
→
Hapur
→
Karnal
→
Kurukshetra
→
Ambala
→
Hisar
→
Rohtak
→
Yamunanagar
→
Rewari
→
Bhiwani
→
Jodhpur
→
Udaipur
→
Kota
→
Ajmer
→
Bikaner
→
Ludhiana
→
Amritsar
→
Jalandhar
→
Patiala
→
Mohali (SAS Nagar)
→
Bathinda
→
Dehradun
→
Haridwar
→
Rudrapur
→
Shimla
→
Solan (Baddi-Barotiwala-Nalagarh)
→
Bhopal
→
Indore
→
Gwalior
→
Jammu
→
Srinagar
→
Panchkula