TDS on Rent
Find out instantly which section applies, the correct TDS rate, the amount to deduct and the net rent payable — updates live as you type.
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How this TDS is worked out
Section 194-IDeduct the right TDS & file the return correctly
We handle 26Q / Form 26QC, TAN, challans and the tenant's TDS certificate end to end.
Disclaimer: Indicative estimate under Sections 194-I and 194-IB for resident payees. Actual liability may vary with PAN availability (20% if no PAN), part-year tenancy and specific facts. Rates per the Income-tax Act as applicable for FY 2026-27.
Section 194-I vs 194-IB
Two different sections govern TDS on rent, and which one applies depends entirely on who the tenant (payer) is. Section 194-I covers businesses and anyone whose accounts are subject to tax audit; Section 194-IB was created so ordinary individuals and HUFs paying high rent also deduct TDS — without needing a TAN.
| Who deducts | Business / audit-liable payer |
| Threshold | ₹6,00,000 (₹50,000/month) / year |
| Rate — land/building/furniture | 10% |
| Rate — plant & machinery | 2% |
| Deducted | Monthly / at each payment |
| TAN required | Yes |
| Return / certificate | Form 26Q → Form 16A |
| Who deducts | Individual / HUF not audit-liable |
| Threshold | ₹50,000 / month |
| Rate | 5% (flat) |
| Deducted | Once a year (last month) |
| TAN required | No |
| Return / certificate | Form 26QC → Form 16C |
Thresholds & rates at a glance
Below the threshold, no TDS is deducted at all. Once the threshold is crossed, TDS applies on the full annual rent (not just the excess).
| Situation | Section | Threshold | Rate |
|---|---|---|---|
| Business tenant — land / building / furniture | 194-I | ₹6,00,000 (₹50,000/month) / year | 10% |
| Business tenant — plant & machinery | 194-I | ₹6,00,000 (₹50,000/month) / year | 2% |
| Individual / HUF (not audit-liable) | 194-IB | ₹50,000 / month | 5% |
| Landlord has no PAN (either section) | 194-I / 194-IB | Same as above | 20% |
TAN, Form 26QC & compliance notes
No TAN under 194-IB
An ordinary individual or HUF deducting under 194-IB does not need a TAN. They deposit the TDS and file Form 26QC using their PAN, so a one-off rental arrangement is simple to comply with.
When to deduct
Under 194-IB, deduct just once — in the last month of the tenancy or the last month of the financial year (March), whichever is earlier — on the whole year's rent. Under 194-I, deduct at each monthly payment/credit.
Form 26QC & 16C
Under 194-IB, file the challan-cum-statement Form 26QC within 30 days of the end of the month in which TDS was deducted, then issue Form 16C to the landlord. Under 194-I, TDS is reported quarterly in Form 26Q with Form 16A as the certificate.
PAN of the landlord
Always collect the landlord's PAN. If it is not provided, TDS must be deducted at 20% (subject to the 194-IB last-month cap), and the higher deduction is hard to recover for the landlord.
Questions people ask
Short answers on TDS on Rent Calculator. Tap a question to open it.
01What is the difference between sections 194-I and 194-IB?
Section 194-I applies to businesses and to individuals subject to tax audit, at 10% on rent for land, building or furniture and 2% for plant and machinery. Section 194-IB applies to other individuals and HUFs paying more than ₹50,000 a month, at 2%.
02What is the threshold under 194-I?
₹6,00,000 in a financial year, raised from ₹2,40,000 with effect from 1 April 2025. It applies per payee.
03Is GST included in the amount on which TDS is deducted?
No, provided GST is shown separately on the invoice. The CBDT has clarified that TDS under Chapter XVII-B is deducted on the amount excluding the GST component.
04Who deducts and when under 194-IB?
The individual tenant, once in the year — in the last month of the financial year or of the tenancy — and deposits it through Form 26QC within 30 days. No TAN is required.
05Is TDS deducted on a security deposit?
No, if it is genuinely refundable. A non-refundable deposit or advance rent is in substance rent and attracts TDS in the year it is paid.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.