Payment of TDS by an individual and filing 26QC

Mohan Kale (357 Points)

23 April 2024  
An individual pays rent of an amount exceeding Rs.50000/- on a monthly basis. As per section 194IB, he is required to deduct tax.
Query is,
1.whether tax is required to be deducted and deposited on a monthly basis (and also file 26QC) as the rent is paid every month?
2.Or required to be deducted and deposited at the end of the FY or last month of the agreement during the year whichever is earlier?
3.Or required to be deducted on monthly basis but deposit only after end of the FY/last month of the agreement during the year?
The provision in the section is very ambiguous.
As per my understanding, the tax is required to be deducted on credit or payment whichever is earlier basis and also to be deposited within 30 days along with 26QC.
Experts are requested to interpret the section.