TDS on Rent (Sec 194-IB) Calculator

Calculate 5% or 20% TDS on Rent exceeding ₹50,000.

If you are an individual/HUF paying monthly rent over ₹50,000, you are legally required to deduct TDS from your landlord's rent once a year (usually in March or when vacating). Use this calculator to find the exact TDS amount and how much rent to actually pay your landlord in the final month.

Calculate TDS | 194-IB Rules | FAQs
₹

Number of months you occupied the property in the current financial year (Max 12).

1 Month 12 Months 12 Months

If PAN is missing, TDS is deducted at 20% instead of 5%.

Total TDS to Deduct

₹36,000

Applicable Rate: 5%

Total Rent Paid (for FY) ₹7,20,000
Rent for the Last Month ₹60,000

Final Month Payout to Landlord

₹24,000

Deduct the total TDS from your final month's rent. Pay the remaining amount to the landlord, and deposit the TDS to the govt via Form 26QC.

Calculations are based on the Income Tax Act 1961. Deposit TDS via Form 26QC within 30 days.

Understanding Section 194-IB (TDS on Rent)

To bring high-value rental transactions under the tax net, the government introduced Section 194-IB. Under this section, individuals or HUFs who pay a monthly rent of more than ₹50,000 are required to deduct Tax at Source (TDS) and deposit it with the government.

TDS Rates & Penalties

Scenario TDS Rate Action Required
Rent is ≤ ₹50,000/month 0% No TDS deduction required.
Rent > ₹50,000/month & PAN Provided 2% Deduct 2% from total annual rent in the final month.
Rent > ₹50,000/month & PAN NOT Provided 20% Deduct 20% (capped at 1 month's rent). Landlord loses out heavily.

When and How to Deduct TDS

Unlike business TDS which is deducted monthly, Section 194-IB is designed to be easy for common individuals. You only need to deduct TDS once in a financial year.

  • Deduction Time: You must deduct the entire year's TDS amount from the rent paid for the month of March (the last month of the financial year).
  • Vacating Property: If you vacate the property in the middle of the year (e.g., November), you must deduct the TDS from the rent paid in November (the last month of your tenancy).
  • No TAN Required: You do not need a Tax Deduction Account Number (TAN). You can file Form 26QC using just your PAN and your landlord's PAN.

Example Calculation

Suppose you pay a rent of ₹60,000 per month for 12 months.
Total Rent = ₹7,20,000.
TDS @ 2% = ₹14,400.
For 11 months (April to Feb), you pay the landlord the full ₹60,000.
In March, you deduct the ₹14,400 TDS. The rent you pay the landlord for March will be: ₹60,000 - ₹14,400 = ₹45,600.
You then deposit the ₹14,400 to the government via Form 26QC before April 30.

Frequently Asked Questions

Who is required to deduct TDS under Section 194-IB?
Any individual or HUF who is NOT liable to tax audit, and pays a monthly rent exceeding ₹50,000, must deduct TDS under Section 194-IB.
What is the rate of TDS under Section 194-IB?
The TDS rate is 2% (reduced from 5% under Budget 2024/2026 rules) if the landlord has provided a PAN. If the landlord does not provide a PAN, the TDS rate is 20%.
When should I deduct TDS under 194-IB?
TDS is to be deducted only once in a Financial Year. It is deducted from the rent paid in the last month of the financial year (March), or in the last month of tenancy if the property is vacated during the year.
What if the TDS amount is more than the last month's rent?
If the landlord does not provide a PAN, the TDS is calculated at 20%. However, the law specifies that the TDS amount cannot exceed the rent payable for the last month. The calculator automatically handles this cap.
Do I need a TAN to deduct TDS under 194-IB?
No, you do not need a TAN (Tax Deduction and Collection Account Number) to deduct TDS under Section 194-IB. You can use your PAN and the landlord's PAN to file Form 26QC.
How do I deposit the TDS to the government?
You must deposit the deducted TDS within 30 days from the end of the month in which the deduction is made, by filling out Form 26QC on the Income Tax e-filing portal.
What happens if I fail to deduct or deposit TDS?
Failure to deduct TDS attracts interest at 1% per month. Failure to deposit deducted TDS attracts interest at 1.5% per month. There is also a late filing fee of ₹200 per day under Section 234E.
Do I need to issue a TDS certificate to the landlord?
Yes, after filing Form 26QC and paying the tax, you must download Form 16C from the TRACES portal and provide it to your landlord within 15 days as proof of tax deduction.

Related Tax Calculators

HRA Calculator

Calculate House Rent Exemption

TDS Late Penalty

Calculate 234E & 201(1A) penalty

Income Tax Calculator

Comprehensive FY 2026-27 calculator

Capital Gains Tax

Calculate LTCG and STCG

TDS on Property Sale

Calculate 194-IA 1% TDS

Rent vs Buy Calculator

Financial breakdown of housing

Section 80C Calculator

Maximize your 1.5L deduction limit

Old vs New Tax Regime

Compare tax slabs instantly

Related Financial & Tax Calculators

Advance Tax Penalty

Sections 234A/B/C.

Professional Tax

State-wise PT deduction.

Income Tax Calculator

Old vs New Regime.

Section 80C Calculator

Maximize 1.5L deduction.

Section 80D Calculator

Health insurance tax benefits.

TDS on Rent (194-IB)

TDS for tenants.

TDS on Property

Section 194-IA rules.

Section 44AD

Presumptive business tax.

Surcharge & Relief

Calculate marginal relief.

Capital Gains Exemption

Sections 54, 54F, 54EC.

Section 44AE

Transport presumptive tax.

House Property Tax

Section 24 deductions.

Future Value

Calculate FV of money.

CAGR Calculator

Compound annual growth.

SIP Calculator

Mutual fund investment.