- Since I am paying more than 50k per month, do i need to deduct any TDS - i have read these at some places? if yes, how much.
- If not, what are the conditions I should be aware of, beyond which I will need to do more work than just pay the rent.
- Context: I am a salaried individual. If some TDS needs to be submitted from my end, please let me know how to do the same, and how much TDS is to be submitted.
@Chb 5
Rate of TDS U/s- 194IB for Financial Year 2024-25
5% (upto 30th Sep 2024)
2% (1st Oct 2024 onwards)As amendment in Budget
When to deduct TDS?
TDS should be deducted once in a financial year. Further, It can be deducted either at the time of credit of rent to the account of the payee for the last month of the financial year. Also, if the property is vacated during the financial year then tax will be deducted in the last month of tenancy.
When to file Form 26QC?
The tenant can file Form 26QC within 30 days from:
- The end of the financial year or
- The day on which the property is vacated/ rent agreement terminated
Hi @Chb,
Yes, If you’re paying more than ₹50,000 in rent per month, you’re required to deduct TDS under Section 194-IB of the Income Tax Act. The TDS rate was 5% for payments made before October 1, 2024, but after the Budget 2024 changes, it has been reduced to 2% for payments made on or after that date.
TDS should be deducted once in the financial year—either at the end of the year or when the property is vacated/tenancy is terminated. After deducting, you need to deposit the TDS in Form 26QC within 30 days from the end of the financial year or the termination date of the rental agreement.