Notes
( THE GLOSSARY · 1 OCT 2026 · UPDATED 1 OCT 2026 · 1 MIN )

TDS on rent (section 194-IB).

Section 194-IB of the Income Tax Act requires a tenant paying more than ₹50,000 rent a month to deduct a small percentage before paying the landlord, and send it to the tax department instead.

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The rate is two percent, cut from five percent by the Finance Act of 2024, effective 1 October 2024, for an individual tenant not otherwise required to have accounts audited. The amount is deposited using Form 26QC, and a certificate goes to the landlord as proof. Without the landlord's PAN, the deduction rises to twenty percent. For any home above that rent, we flag this to the tenant before the first rent is due.

01

The number

2% TDS rate (cut from 5%), Finance (No. 2) Act, 2024, effective 1 October 2024, on rent above ₹50,000 a month, section 194-IB, Income Tax Act.

02

Sources

Where it comes from. Level 1 is a government or court page, level 2 established press, level 3 a portal's explainer, which gives only what is commonly quoted.

  • Income Tax Department, Government of India, TDS on rent by certain individual or HUF, https://www.incometaxindia.gov.in/w/tds-on-rent-by-certain-individual-or-huf, level 1
  • TaxGuru, TDS on rent for FY 2024-25, section 194-IB rate, https://taxguru.in/income-tax/tds-rent-fy-2024-25-section-194-ib-rate-5-percentor-2-percent.html, level 2
( THE NUMBER )

2% TDS rate (cut from 5%), Finance (No.

2% TDS rate (cut from 5%), Finance (No. 2) Act, 2024, effective 1 October 2024, on rent above ₹50,000 a month, section 194-IB, Income Tax Act.

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