File Form 26QC for TDS on rent of a property

TDS & TCS TDS Return Forms
1

Form 26QC is a TDS return that needs to be filled and submitted to the ITD by the person or tenant for paying rent of a property to the landlord exceeding ₹50,000 per month. Basically, this section covers the high rental income group within the purview of tax.

If you’re a tenant, staying in a rented property then you need to deduct tax (TDS) at 5% of the total rent paid u/s 194IB. TDS has to be deducted at the time of paying rent to the landlord, which is in the last month of the financial year or in the month when the property is vacated.

In case, your total amount of TDS exceeds the rent of the last month, then, the amount of the TDS will be restricted to the rent of the last month.

This form enables the deductor to furnish details of the property, tenant, landlord, and the rent paid.

The TDS is deducted and filed once in a financial year. As a tenant, you can file Form 26QC within 30 days from the end of the financial year or on the day the rent agreement is terminated.

How to File Form 26QC from e-Filing Portal?

  1. Visit the Home | Income Tax Department
  2. Login using PAN /User Id and Password
  3. Navigate to e-File > e-Pay Tax
  4. Click on New Payment tab from the right side
  5. Scroll down and select the tab “TDS on Sale of Property (Form 26QC)”
  6. Form 26QC is organized in the following manner
    a. Add Tenant Details
    b. Add Landlord Details
    c. Add Property Rented Details
    d. Add Payment Details
  7. Enter all the required details and make the payment.

Once the payment is made, you can view the taxpayer details and payment details under the summary section. And you can also download the Challan Receipt for future reference.

Once the form is filled and submitted, the landlord can download the TDS certificate (Form 16C) from the TRACES website. The TDS certificate serves as proof of tax deducted at source and can be used by the landlord to claim credit for the TDS deducted while filing their income tax return.

What if the landlord is a Non-resident Indian (NRI)?

If the landlord of the property is an NRI then the tenant must file Form 27Q irrespective of the rent amount which is filed on a quarterly basis.

What if TDS is not deducted?

If the buyer fails to deduct or deposit the TDS to the government, the buyer is liable to pay interest of 1.5% per month or part of the month till TDS is not deducted or deposited. Additionally, a late fee of ₹200 per day will be levied till the date Form 26QC is not filed.

Read more about Form 26QC: TDS on Rent of Property - Learn by Quicko.

If any queries, ask them out here!

2

Hi Madam,

It seems like the TIN-NSDL website can no longer be used for filing form 26QC. It asks to use the incometaxindia.gov.in site. Can you please check and help?

3

Hi @Chirag_Hota

You may follow these steps to File Form 26QC from Income Tax Portal

  1. Visit the Home | Income Tax Department
  2. Navigate to e-File > e-Pay Tax
  3. Click on New Payment tab from right side
  4. Scroll down and select the tab “TDS on Rent of Property (Form 26QC)”
  5. Form 26QC is organized in the following manner
    a. Add Tenant Details
    b. Add Landlord Details
    c. Add Property Rented Details
    d. Add Payment Details
  6. Enter all the required details and make the payment.
  7. Once the payment is made, a challan identification number (CIN) will be generated, which should be saved for future reference.

Hope it helps.

4

Hello madam

as you say in point no 4 Scroll down and select the tab " TDS on Rent Property (form 26QC)" but there is no option of TDS on Rent Property in that SCroll List.

5

Hi @Ankit_Jain

Here’s attaching a screenshot for your reference,

image
image1074×897 72.4 KB

You can check, there is an option 26 QC (TDS on Rent of Property), then, click Proceed to move further.

Hope it helps.

1 Like
7

These are the steps

  1. Go to Home | Income Tax Department
  2. Click login
  3. Login with your details.
  4. Then from the top menu “e-file” → “epay-tax”
  5. Then click “new payment” option
  6. finally you get the old screen.
1 Like
8

Hi @Muskan_Balar ,

If rent is paid on monthly basis, do I need to file TDS on rent once a year (towards end of financial year) or do I need to file TDS on rent on monthly basis ?

Thanks

9

Hi @ujjwalc

If you’re a tenant of the property, who is making rent payments to the resident landlord need to deduct TDS once in a financial year, which is the last month of the financial year.

You’re required to file Form 26QC within 30 days from

  • The end of the financial year, which is 30th April, or
  • The day on which the property is vacated/ rent agreement terminated.

Here’s more you can read about Form 26QC: TDS on Rent of Property - Learn by Quicko.

10

Dear Ma’am,

Can you please tell us how to download Form 16 once we paid the TDS amount under section 194IB

11

Hi @Kuruba_Dinesh

Form 16 is a TDS certificate on salary. It is issued by employers to their employees at the end of FY.

As you mentioned you have paid the TDS amount u/s 194IB, which is for TDS deduction on rent paid by individuals. So in that regard, you are required to download Form 16A.

Form 16A is different from Form 16. Form 16A is for TDS on income other than salary.

Here are the Steps to Download Form 16A from TRACES Portal - Learn by Quicko.

Hope this helps.

12

I Have filed form 26QC on 18th Nov 2024 for 8 months rent paid in november as the agreement is over , Total rent for 8 months 515955/- which is appx 64494/- per month & deposited tax of Rs. 25798/- (5%), However in Landlord 26AS only Rs. 10319/- is reflecting.

Where is the calculation mistake in filing of return , can anyone help me with this
Thank you in advance

13

Hello @Sweta_Mehta

TDS at 5% is to be deducted for rent payment made and Form 26 QC is to be filed once a year. Since your agreement is over, you have to file the return.

The incorrect amount reflecting in Form 26AS of the landlord is something a user specific issue and we need to verify the return filed by you to help you further.

We have a team of tax experts who can review the return filed by you and help you to file a corrected return if needed to reflect the correct amount in Form 26AS of landlord. You can book a slot using the below link with one of our tax experts:

Book a MEET

Thank you.