Rental Compliance
TDS on Rent Calculator
Calculate Tax Deducted at Source (TDS) on residential and commercial property rent payments under Section 194-IB (for individual tenants paying >₹50,000/month, reduced to 2% w.e.f. October 1, 2024) and Section 194-I (for businesses and audited entities).
Tenancy Parameters Section 194-IB / 194-I
For Individuals: TDS applies only if rent exceeds ₹50,000 per month.
TDS Assessment
Updated Rates
Monthly TDS to Deduct
₹ 1,300
Applicable TDS Rate:
2%
Net Monthly Rent to Landlord:
₹ 63,700
Statutory Compliance Challan:
Challan-cum-statement Form 26QC
Important Amendment:
Effective October 1, 2024, the TDS rate under Section 194-IB for individuals paying rent exceeding ₹50,000/month has been slashed from 5% down to 2%, easing cash flow for both tenants and landlords. TAN is NOT required; only PAN is needed for Form 26QC.
TDS on Rent Compliance Rules
Individual tenants paying monthly rent exceeding ₹50,000 do not need a TAN (Tax Deduction Account Number). They must deduct TDS using their PAN and file online Form 26QC within 30 days from the end of the month in which the rent was paid or credit was given.