Are you paying over Rs 50,000 rent per month? You will be required to deduct 5% TDS from 1 June


Are you paying a rent of over Rs 50,000 per month? You will now have to deduct tax at source at 5 percent beginning 1 June. This is according to a new section 194-IB added to the Finance Act, 2017.

Representational image. Reuters.

Representational image. Reuters.

Keep in mind that any sum deducted under this section 194-IB, you will have to pay the credit to the central government within a period of thirty days from the end of the month in which the deduction is made.

You will need to use the challan-cum-statement in Form No. 26QC to do so. The amount deducted as tax can be transferred electronically to the Reserve Bank of India or State Bank of India or any other authorised bank.

You will have to give a certificate of deduction of tax at source in Form No.16C to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QC.

Also note that if the rent is paid as an advance then the TDS is required to be deducted on the adjustment of such deposit against rent.


You don’t need to cut TDS every month, as it can be done in the last month of the financial year. In case you are vacating the flat during the year, the TDS can be cut in the last month of tenancy.


Published Date: Jun 15, 2017 01:39 pm | Updated Date: Jun 15, 2017 01:39 pm



Also See