Section 194IB TDS on Rent for Individuals & HUF

Section 194IB:TDS on Rent (for Individuals & HUF)

Effective from 1stJune 2017, individuals & HUF not covered under tax audit (under Section 44AB)would be subjected to deduct tax at source for rent payments if it is Rs. 50,000 or more per month.

Salient features:

  • Applicable only to individuals & HUF who are not under tax audit (under section 44AB)
  • This section is applicable from 1stJune 2017
  • Tax Account Number (TAN) not required for the deductor
  • Applicable to monthly Rent of Rs. 50,000/- or above
  • TDS @ 5% if rent receiver is holding PAN, or otherwise TDS would be @ 20%
  • Deduction of Tax is to done in the last month of previous year (i.e. March) or in the month when the premises is vacated
  • Deposit to be made?within 30 days?from the end of month when tax was deducted. For Example: if deduction was in March, it should be deposited by 30thApril or if deduction was in December, it should be deposited by 30thJanuary.
  • The deducted tax is to be deposited in the newly introduced Form 26QC through electronic means to one of the authorized banks
  • TDS Certificate (Form 16C) is to be issued.

Relevant Topics on:

What is Form 16C?

What is Form 26QC?

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