TDS on Rent 194 QC

After paying tax through TIN NSDL portal,we have to create one ID through TRACES portal with Deductor PAN.

Form 26QC is the return for TDS under Section 194-IB on rent paid by individual or HUF. When you enter the net rent instead of gross rent, the landlord's Form 26AS shows a lower rent figure and lower TDS credit than what actually happened. Here is how to fix it.

Step 1: Register on TRACES. Go to traces.gov.in, click Register as Taxpayer (not Deductor, as 26QC filers use the taxpayer login side), enter your PAN, date of birth, and verify via OTP sent to your registered mobile. Registration is free and takes 10-15 minutes.

Step 2: After login, go to Forms, then 26QC Correction, and select the challan period. Enter the correct gross rent figure. The system recomputes TDS automatically.

Step 3: Submit the correction. The landlord's Form 26AS updates once the correction is processed (usually 3-5 working days).

One important note: if your landlord has already filed ITR using the understated TDS credit, they may need to file a revised return after your correction goes through.

This [TDS rate chart for FY 2026-27](https://taxgarden.in/blog/tds-rate-chart-2026-to-2027) covers the current Section 194-IB rate and threshold.

File a correction statement for Form 26QC. The “Amount paid/credited” should generally reflect the gross rent before TDS, not the net amount paid to the landlord. The correction should update the rent amount and, if needed, the related TDS particulars; the corrected statement can then flow through to Form 26AS after processing. Confirm the correct gross rent and TDS figures from the rent and payment records before submitting it.

TRACES login is not necessarily the only route to check: use the official 26QC correction process available to the tenant, and verify the current access requirements. If you cannot access the correction facility, contact the relevant TDS CPC/portal helpdesk with the acknowledgement number and payment details; do not file a fresh 26QC for the same transaction merely to replace the incorrect one.

For 26QC corrections, a clear workflow from the rent ledger through the statement and 26AS reconciliation helps prevent repeat mismatches. Manual compliance work is difficult to scale, and automation can reduce repetitive preparation and checking while professional judgment stays in control. Our platform offers 2,000+ AI agents and 650+ integrations for relevant tax, accounting and compliance workflows. To explore a fit for your practice, connect with us on WhatsApp at https://wa.me/message/3HVOZ7HIY4ESC1.

You can correct the amount paid in Form 26QC online on TRACES by registering as a Taxpayer with your own PAN; also check whether TDS was short deducted because of the net figure.

1. Registration: on TRACES, register as Taxpayer (not Deductor) with your PAN, then log in. A tenant filing 26QC does not need a TAN.

2. Correction: go to Statements/Forms > Request for Correction, select Form 26QC, enter the acknowledgement number and assessment year, and choose the validation method: Aadhaar/net banking e-verification, DSC, or approval by the Assessing Officer. Then correct the "Amount paid/credited" to the gross rent.

3. Short deduction: if TDS was computed on the net amount, the TDS paid is lower than required. Pay the shortfall through a fresh challan under the same Form 26QC acknowledgement (via the correction or as directed by TRACES), along with interest under Section 201(1A) at 1% per month for late deduction / 1.5% for late payment, and settle any default shown in the TRACES demand.

4. Rate check: Section 194-IB applies when rent exceeds Rs 50,000 per month; the rate is 2% from 1 October 2024 (5% earlier). TDS is deducted on gross rent, once for the year/last month of tenancy.

5. After processing, download the revised Form 16C and give it to the landlord; Form 26AS of the landlord will update.

6. Current position: for rent paid from 1 April 2026, TDS on rent by individuals/HUFs is under the Income-tax Act, 2025 and the statement is filed in Form 141 under the Income-tax Rules, 2026 instead of 26QC.

Overall Summary: Register on TRACES as a taxpayer, file the 26QC correction with gross rent and verify it online, and pay any short-deducted TDS with interest.