TDS on Rent Calculator - Section 194I
Section 194I: Companies deduct 10% TDS on rent exceeding Rs 2.4 lakh/year. Section 194IB: Individuals/HUF (not subject to audit) deduct 5% TDS on monthly rent exceeding Rs 50,000. On Rs 70,000/month rent: annual rent = Rs 8.4 lakh. Under 194IB, 5% TDS = Rs 4,200 deducted in March (194IB deduction is annual in the last month).
TDS Rate
10%
TDS Amount
₹10,000
Net Payment
₹90,000
Without PAN, TDS is deducted at 20% (Section 206AA). Rates: 194J: 10%, 194I: 10%, 194C: 1-2%, 194A: 10%, 194H: 5%. Salary TDS varies — shown as flat 10% estimate.
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Common questions about TDS on Rent Calculator - Section 194I
Do I need to deduct TDS on rent as a salaried person?
Only if monthly rent exceeds Rs 50,000. Section 194IB requires individuals and HUFs (not liable to tax audit) to deduct 5% TDS in March each year on the total rent paid. TDS is deposited using Form 26QC and a certificate in Form 16C is issued to the landlord. One-time payment, unlike quarterly TDS for companies.
How does the landlord claim TDS deducted on rent?
The tenant files Form 26QC and the credit appears in the landlord's Form 26AS. The landlord reports rent income in ITR and claims the TDS credit against their tax liability. If landlord's total tax is less than TDS deducted, the excess is refunded. The landlord does not need to do anything special - just file ITR accurately.
What if I am paying rent to family?
TDS applies based on the nature of payment, not the relationship. If you are paying genuine rent to a family member (parent, sibling) with a documented rental agreement, Section 194IB applies if rent exceeds Rs 50,000/month. The family member must declare this as rental income. However, if the "rent" is informal family arrangement with no genuine tenancy, TDS may not apply.