Not legal advice — verify with CBDT

TDS Section 194IB Rent by individual/HUF (not under tax audit)

FY 2025-26 · Rate 2% (reduced from 5% by Finance Act 2024, effective Oct 2024)

Section
194IB
Rate (with PAN)
2% (reduced from 5% by Finance Act 2024, effective Oct 2024)
Rate (no PAN)
20% (capped at last month's rent)

What does this section cover?

TDS on rent paid by individual/HUF (not subject to tax audit) when monthly rent exceeds ₹50,000.

Why this section: Salaried/individual tenants paying > ₹50k/month rent must deduct 2% TDS once a year (in March or at vacating) via Form 26QC.

Note: Rate cut from 5% to 2% from Oct 2024. One-time deduction at end of FY or tenancy. TAN not required — use PAN.

Key facts

Threshold
₹50,000 per month
Applicable for
FY 2025-26
Who deducts
Individual / HUF tenant (not under tax audit)
Paid to
Property owner / landlord
Statutory source
Section 194IB, Income Tax Act
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194IB is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

salaried rentindividual renthigh rent salariedrent 50000hra tdsform 26qc

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

Search TDS sections →

Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.