Non Deduction of TDS- 194IB

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This query is : Resolved

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If a tenant fails to deduct and deposit TDS on rent under Section 194IB, but the landlord has already declared and paid tax on the rental income in their ITR, the tenant may not be considered a defaulter. This is possible if the landlord has filed their income tax return, included the rental income, and paid the due tax. The tenant would then need to furnish a certificate from an accountant and submit Form 26A, either online as a reply to a notice or offline to the Income Tax Officer.

Sandeep Kumar P

Sandeep Kumar P (Querist)
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28 March 2025 Dear all,

Have a query,

Form 26A must now be filed online using TAN, and Form 24 cannot be filed through TRACES when logged in with PAN, could some one please outline the process to be followed if a tenant has failed to deduct and deposit TDS on rent under Section 194IB, while the landlord has already reported the rental income and paid the applicable taxes in their ITR ?
Thanks
Sandeep

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 March 2025 As per sec. 201 IT act, If the assessee can prove that the revenue ( tax) was actually paid by the deductee, the deductor would not be considered defaulter.
A deductor may not be considered defaulter if following conditions are fulfilled :
(i) The deductee has furnished his/its return of income under section 139;
(ii) has taken into account such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income,
and the deductor furnishes a certificate to this effect from an accountant in such form as may be prescribed.

Submit the form 26A as a reply to the notice received online, or submit it to your ITO offline.

Sandeep Kumar P

Sandeep Kumar P (Querist)
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29 March 2025 Thank you so much for your quick response

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 March 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 September 2025 Good luck....

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