Reviewed by Finin2min Editorial Desk · Last reviewed 4 September 2026
Calculate rent TDS for specified individual or HUF tenants using the ₹50,000 monthly threshold, 2% rate and Form 141 due date.
Calculate rent TDS for individual/HUF tenant
Indicative result
The ₹50,000 test applies per month or part of month, and for definite joint-owner shares it applies owner-wise.
Total rent considered
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Indicative TDS
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Component
Result
Rate used
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Tenant-share TDS
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Statement
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Statement due date
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TDS certificate
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Income-tax Act, 2025 note: Section 194-IB (TDS on rent by individuals/HUF) is consolidated into Section 393 (the Act's unified TDS table) under the Income-tax Act, 2025, effective FY 2026-27. The specific table entry/payment code within Section 393 was not independently pinned down — verify against the Gazette text before citing in a filing.
How This Is Calculated
Under Section 194-IB, an individual or HUF (not otherwise required to get accounts audited) paying rent above ₹50,000 per month to a resident landlord must deduct TDS at 2% of the rent (reduced from 5% effective October 2024). This TDS is a one-time annual compliance — deducted once during the year (usually the last month of tenancy or the financial year) rather than every month.
Frequently Asked Questions
What is the rent TDS threshold and rate?
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TDS under Section 194-IB applies when monthly rent exceeds ₹50,000, at a rate of 2% of the total rent for the year (this rate was reduced from 5% to 2% effective October 2024).
Who is required to deduct TDS on rent under Section 194-IB?
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Individuals and HUFs who are not otherwise required to have their accounts tax-audited, and who pay rent above ₹50,000/month to a resident landlord, must deduct this TDS — it specifically targets tenants who wouldn't otherwise be covered by the general Section 194-I TDS rules that apply to businesses.
Does rent TDS need to be deducted every month?
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No. Unlike regular business TDS, Section 194-IB TDS is deducted once — either in the last month of the tenancy during the year, or in March if the tenancy continues — rather than monthly, which reduces the compliance burden for individual tenants.
Source and review trail
Use the current official instrument, portal or regulator publication before acting.
Scope: Computes TDS on rent payments by individuals/HUFs currently under Section 393(1) of the Income-tax Act, 2025 (the renumbered successor to the erstwhile Section 194-IB), using Form 141 (successor to Form 26QC).
Calculation logic
Applies to an individual/HUF (not otherwise subject to tax-audit-triggered TDS obligations under other provisions) paying rent exceeding the currently prescribed monthly threshold (₹50,000/month) to a resident landlord.
TDS rate = 2% of the rent paid for the relevant period where the landlord's PAN is available (reduced from 5% with effect from 1 October 2024), or 20% (capped at the last month's rent) if PAN is not furnished — subject to a valid lower-deduction certificate where obtained.
Unlike most TDS provisions requiring monthly deduction, this specific provision permits deduction once at the end of the financial year (or at the time of vacating/terminating the tenancy during the year, if earlier), simplifying compliance for individual tenants.
Inputs and assumptions
Threshold (₹50,000/month) and rate follow the Income-tax Act, 2025 and its rules as currently in force, which renumbered but functionally continued the erstwhile Section 194-IB / Form 26QC framework.
This provision applies specifically to individuals/HUFs not otherwise required to get their accounts audited under the applicable tax-audit provisions — businesses/professionals subject to tax audit follow the general TDS-on-rent provision (with monthly deduction) instead.
Exclusions and edge cases
No TAN (Tax Deduction Account Number) is required for the tenant to deduct/deposit this specific TDS — Form 141 (like its predecessor Form 26QC) can be filed using PAN, which the calculator notes as a compliance simplification specific to this provision.
Does not itself file Form 141 or issue the TDS certificate — the tenant must complete this on the Income Tax e-filing/TIN portal within the prescribed timeline after deduction.