TDS · Section 194IB · FY 2026–27
Section 194IB: TDS on Rent by Individuals (Non-Audit)
Section 194IB (TDS on Rent by Individuals (Non-Audit)): the TDS rate is 2%. Threshold: Rs. 50,000 per month (or part of a month). A month at or below it attracts no TDS; the test is the monthly rent, not the yearly total.
Section 194IB applies when an individual or HUF (not required to maintain books / not subject to audit) pays rent above Rs. 50,000/month. The rate was reduced from 5% to 2% in Budget 2024.
Rate source: Income Tax Department TDS rate chart
2%
2%
Threshold
₹50K a month
Who deducts
Individual/HUF tenants paying personal residential rent above Rs. 50K/month.
No PAN
20%
Shows up in
Form 26AS & AIS, once the tenant files Form 26QC
What it looks like on a real payment
Worked exampleSec 194IB
Amount payable to you₹7,20,000
TDS @ 2%− ₹14,400
You receive₹7,05,600
The ₹14,400 is not lost — it is pre-paid tax, credited in your 26AS and adjusted at filing.
TDS deducted once in March (or at the end of tenancy) on the annual aggregate.
Run your own numbersFree 194IB calculator — invoice amount in, deduction and take-home out. No signup.What this means for you
As a small landlord this 2% is usually fully recoverable at ITR unless your total income is high — check the 26QC entry shows up in your 26AS before filing.
194IB is deducted by individual/HUF tenants (not under audit) paying residential rent above Rs. 50,000/month — relevant if you let out a flat to such a tenant. They deduct 2% once a year (in March or at the end of tenancy) and deposit it via Form 26QC; you claim the credit from your 26AS at ITR.
Effective since: 1 October 2024 (2% rate).
When your client must deposit it — and report it
A tenant deducting under 194IB deposits the TDS within 30 days from the end of the month of deduction, using Form 26QC — a challan-cum-statement, so there is no quarterly return. It reaches your 26AS once that form is filed.
FAQ
What is the TDS rate under Section 194IB?
Who deducts TDS under Section 194IB?
What is the threshold for Section 194IB TDS?
Is TDS under Section 194IB deducted on the GST-inclusive amount?
How do I claim TDS deducted under Section 194IB in my ITR?
Not sure how to claim this TDS back? Read the freelancer’s guide to TDS deducted by clients — how it lands in your 26AS and how you reclaim it in your ITR.
For the CA reading this
The deadline sheet you already send, with your name on it
Every statutory date for the month — GST returns, advance tax, and the dates your client's own customers owe them: when the TDS they withheld must reach the department, and when the certificate is due. Add your firm's name and forward it as it stands. No signup, no email, nothing to accept.
The image is the one that travels on WhatsApp. Dates are statutory, not advice — the sheet says which rows bind whom.
Sources
Rates as notified for FY 2026–27 and can change. General information, not tax advice. Verify with your CA before you file.
Related sections
Every deduction, tracked to the rupee
Your TDS credits, never lost.
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