TDS on Rent under 194-IB

TDS 751 views 6 replies

Gaurav Raj

43 Points Posted on 08 March 2025

Being an Individual, payment of rent more than 50,000 per month is liable for deduction of Tax under section 194-IB the rate of 5%. Further in finance act, 2024 it has been reduced to 2% effective from 1st October, 2024.

So I am paying rent of 80,000 per month from July to March and depositing TDS in 26Q at once. Should I deduct TDS with bifurcation i.e 5% from July to September and 2% from October to March or I should deduct 2% on the whole?

Please help.

Thank You.

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211708 Points Posted on 08 March 2025

System is accepting only 2 % TDS for whole the period. Anything paid extra is not consumed.

Gaurav Raj

43 Points Posted on 08 March 2025

Even if I pay all amount at once in 26QC I should choose 2% even if some portion of rent is paid before 1st October?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211708 Points Posted on 08 March 2025

Yes, as the software is designed as such. Technically it doesn't sound correct; but that is the condition as per the system.

NARENDRA

ACCOUNTS MANAGER

2213 Points Posted on 11 March 2025

If you pay monthly rent , you should cut tds as per the rate , pay & file the return accordingly.

Rajnish Kumar

7 Points Posted on 09 April 2025

I deducted 5% TDS in Feb 2025 instead of 2% TDS on house rent

Now can I claim the unutilised 3% TDS as advance tax

regards

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211708 Points Posted on 09 April 2025

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