Rental Agreement for Property Rent Lease TDS

It is a policy that come under act of section 194I and or section 194-IB. In this any citizen belong to India and he is living in a rented house can reduce income tax at a rate of 2% for machinery/plant and 10% for renting in any building or any house. This can be done through cheque or DD or any online mode

SECTION 194-IB – Rental Agreement Act

From year June 1st 2017, 5% of tax should be deducted to tenant and deducted amount can go to bank through any authorized branches. If income is more than 24000 no amount is deducted. No amount is deducted from business houses by section 10.

  • Land
  • Fittings
  • Building
  • Plant
  • Furniture
  • Equipment

Guidelines for tenant:

  • Citizen paying a rent of 50000 can deduct TDS under section 194IB
  • He can deduct 5% tax from land lord
  • He should possess PAN card
  • It is mandatory to take details of PAN card of land lord
  • TDS certificate should be taken at online in form of 26QC
  • Land lord should be non-resident under section 195C

Guidelines for land lord:

  • Land lord should possess annual tax report in form of 26AS
  • Tenant should observe that it obtain from TRACES website
  • Land lord should pay tax regarding TDS.
  • Responsible persons to deduct TDS under section 194IB:
  • Person who is not liable under section 44AB can pay tax to income department.

Rectifying details of TDS:

Details that are mentioned wrong in PAN card are rectified by going to official portal of NDSL and then contact center at number 020-27218080 or can send mail to

What is FORM26QC?

It is a challan cum document that come under TIN website which is used to report TDS under section 194IB in income tax department.

Due date of payment of TDS: Rent on a TDS can be paid within 30 days from beginning of month in which deduction is made.

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