TDS Rate Chart Section 194-IB — TDS on Rent Paid by Individuals & HUF
Section 194-IB — TDS on Rent Paid by Individuals & HUF
Income Tax Act 1961 — s.194-IB · ITA 2025 — s.393 + 397 + 402
Rate and threshold
| Condition | Rate |
|---|---|
| All qualifying rent | 2% |
- Threshold
- ₹50,000 per month or part of a month
- Timing of deduction
- Once per FY — at credit/payment of rent for the last month of the year (or last month of tenancy if vacating earlier). Deposited via Form 26QC within 30 days of the month of deduction; certificate in Form 16C. No TAN required.
- Who deducts
- Individual or HUF not required to deduct under s.194-I
- Payee
- Resident landlord
Rate history
| Period | Value | Amended by |
|---|---|---|
| Until 30 Sep 2024 | 5% | — |
| From 1 Oct 2024 | 2% | Finance (No. 2) Act 2024 |
What this section covers
Rent for land or building (or both)
Worked example
Salaried tenant pays ₹60,000/month for full FY
Annual rent ₹7,20,000 × 2% = ₹14,400, deducted from March rent and deposited via Form 26QC.
TDS is capped at the last month's rent where the landlord's PAN is unavailable and 20% applies (s.206AA cap).
Under the Income Tax Act 2025
From 1 April 2026, s.194-IB of the 1961 Act maps to s.393 + 397 + 402 of the Income Tax Act 2025 (split mapping, per the official CBDT concordance). Consolidated into the s.393 TDS table; compliance/reporting in s.397 under the ITA 2025.
Full 1961 → 2025 mapping for s.194-IB →Frequently asked questions
Do I need a TAN to deduct under 194-IB?
No — s.194-IB(3) dispenses with TAN. Deposit is PAN-based through Form 26QC.
I vacated mid-year — when do I deduct?
From the rent of the last month of the tenancy, on the full rent paid during the year.