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. This panel separates the category authority from page-specific references.
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.