TDS u/s 194IB- At a glance




TDS u/s 194IB- At a glance

Section 194 IB relates to TDS deducted by individuals and HUF to residents on rent paid.

  1. A) Landlord is Resident-

                  Sr. No




Person liable to deduct

Individuals or HUF who are not required to get their books


audited u/s 44AB


When the liability arises

Rent paid to residents per month or part thereof > 50,000/-

Note: Rent paid to non- residents is covered u/s 195.


Amount of tax to be


. Landlord furnished PAN- 5%

. Landlord does not furnish PAN- 20%


Time of TDS deduction

. TDS has to be deducted and remitted once in a year

either at the time of payment or credit for the last

month of tenancy or last month of the financial year.

Note: if the assessee changes place of residence during

the financial year, TDS has to be deducted from rent

paid to both landlords if rent amount exceeds 50,000/-.


Requirement of TAN by the

assessee (Individual or


TAN is not required by the assessee (Individual or HUF)

deducting and remitting TDS.


Due Date of payment of


TDS has to be paid within 30 days from the last day of the

month for which TDS is deducted in form 26QC.


Details required for filling

form 26QC.

. PAN of landlord and tenant

. Address of landlord and tenant

.  Period of tenancy

.  Amount of rent payable

. Rent payable in last month

. Total amount paid/ credited

. Date of deduction of tax

. Interest or late fee payable


Interest or penalty

.  Interest @1% is levied if TDs is not deducted, and

.  Interest @1.5% p.m. is payable if TDS is deducted

but not paid to the government.

.  Penalty @ Rs. 100 per day is levied for late filing of

Form 26QC.


  1. B) Landlord is Non- resident-

.  TDS u/s 195 is deducted for payment made to non- resident.


. TDS @31.20% is deducted irrespective of the amount of rent.

. TDS can be deducted at a lower rate. Any of the following 2 methods can be followed-

  1. a) Tenant can make an application to the Income Tax Officer, u/s 195(2) of Income Tax Act, or
  1. b) The landlord can make an application either by themselves or through their

authorized representatives in India to the Income Tax Officer, u/s 195(3) of the Income Tax Act