TDS on Rent Calculator

Section 194-I applies when a business or professional (not an individual/HUF whose books aren't audited) pays rent above ₹2,40,000/year to a resident landlord. TDS is 2% on plant/machinery/equipment rent and 10% on land, building, or furniture rent. Section 194-IB applies when an individual/HUF pays rent above ₹50,000/month to a resident — TDS is 5% (2% from 1 Oct 2024 onwards).

No. Section 194-IB was created specifically so individuals can deduct TDS on rent without needing a TAN. Deposit the TDS using Form 26QC (with the tenant's PAN) and issue Form 16C to the landlord within 15 days of the due date.

TDS under 194-IB is deducted only once a year (or at the time of vacating) in the last month of the tenancy or the last month of the financial year — whichever is earlier. Deposit via Form 26QC within 30 days from the end of that month.

Without a PAN, TDS must be deducted at 20% under Section 206AA (or the higher of 5% and 20%). This applies to both 194-I and 194-IB. Ask the landlord to furnish PAN before deduction.

No. TDS is deducted on the rent amount excluding GST, provided GST is shown separately on the invoice. If the invoice bundles GST with rent, TDS is deducted on the total.