TDS on rent applies when annual rent exceeds ₹2.4L (194I, for businesses) or monthly rent exceeds ₹50K (194IB, for individuals/HUFs). 194I: 10% on land/buildings, 2% on plant/machinery. 194IB: 5% deducted once at year-end or move-out. The calculator picks the right section based on your payer type and rent amount.
When to use this
Use when: a company pays rent for office space (194I, monthly TDS), an individual pays rent over ₹50K/month to a landlord (194IB, deduct once and remit to govt), an NRI is your landlord (different section - 195, 30% TDS regardless of amount), or you're a landlord wanting to know what's deductible.
Frequently Asked Questions
What's the difference between 194I and 194IB?
194I: Businesses paying rent above ₹2.4L/year, TDS 10% deducted monthly. 194IB: Individuals/HUFs paying rent above ₹50K/month to a resident landlord, TDS 5% deducted once a year (or at vacate). 194IB doesn't require a TAN, making it easier for individual tenants.
Do I need a TAN to deduct TDS on rent under 194IB?
No - that's the whole point of 194IB. Individuals and HUFs paying rent > ₹50K/month deduct using their PAN (not TAN), file Form 26QC online, and issue Form 16C to the landlord. Much simpler than the regular TDS workflow.
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