TDS on rent calculator (194-IB & 194-I)
Almost everyone asks this question the wrong way round. It is not “is my rent high enough for TDS?” — it is who is paying. The same ₹70,000 a month carries a completely different obligation depending on whether the tenant is an ordinary individual or a business.
You must deduct ₹18,000 and deposit it with the government. This falls under section 194-IB, because the rent is above ₹50,000 a month and the payer is an individual or HUF not liable to tax audit. Deduct 2%. You deduct once, not monthly — in March, or in the last month of the tenancy if it ends earlier. Then file Form 26QC within 30 days of the end of that month, and give the landlord Form 16C within 15 days of filing. You do not need a TAN — your PAN and the landlord’s are enough.
Runs entirely in your browser. Nothing is sent to us or stored. Rules as they stand for FY 2026-27 — a guide for planning, not tax advice.
Two sections, and the one that applies to you
There are two separate provisions for TDS on rent, and they are not alternatives you get to choose between — the payer decides which one applies.
| Section 194-IB | Section 194-I | |
|---|---|---|
| Who deducts | Individuals & HUFs not liable to tax audit | Businesses, and anyone liable to tax audit |
| Threshold | More than ₹50,000 per month | More than ₹6 lakh per year |
| Rate | 2% (20% if no PAN) | 10% land/building/furniture · 2% plant & machinery |
| How often | Once a year — March, or the last month of the tenancy | At each payment or credit |
| TAN needed | No — PAN of both parties is enough | Yes |
| Form | 26QC within 30 days; 16C to the landlord within 15 days | Quarterly TDS return (26Q); Form 16A |
Three things people get wrong
The 194-IB test is monthly, not annual. Rent of ₹48,000 a month is ₹5.76 lakh a year, which sounds large — but it is under the ₹50,000 monthly line, so an individual tenant deducts nothing. The annual figure is simply not the test.
194-IB is deducted once, not every month. This trips up tenants who dutifully withhold 2% from each month’s rent and leave the landlord short all year. The deduction happens in March, or in the final month if the tenancy ends earlier, and covers the whole period.
The no-PAN rate is capped. Without the landlord’s PAN the rate jumps to 20%, but the deduction cannot exceed the last month’s rent. On a ₹75,000 tenancy running twelve months, 20% of ₹9 lakh would be ₹1.8 lakh — the cap brings it down to ₹75,000. The calculator applies this automatically.
The ₹6 lakh threshold is new-ish
Section 194-I’s threshold was raised to ₹6 lakh from the earlier ₹2.4 lakh. A commercial tenancy that required TDS a couple of years ago may sit below the line now, so it is worth rechecking rather than carrying forward last year’s answer.
Frequently asked questions
Do I have to deduct TDS on rent?
It depends on who is paying. An individual or HUF not liable to tax audit must deduct under section 194-IB only if the rent exceeds ₹50,000 per month. A business, or anyone liable to tax audit, must deduct under section 194-I once total rent to a landlord crosses ₹6 lakh in the financial year. Below those lines, no TDS is required.
What is the TDS rate on rent for FY 2026-27?
Under section 194-IB it is 2% where the landlord has provided a PAN, and 20% where they have not. Under section 194-I it is 10% for land, building, furniture or fittings, and 2% for plant and machinery.
Is TDS on rent deducted every month?
Not under 194-IB. An individual tenant deducts once for the whole year — in March, or in the last month of the tenancy if it ends earlier — and pays it in one go. Section 194-I is different: a business deducts at each payment or credit through the year.
Do I need a TAN to deduct TDS on rent?
Not for section 194-IB. That was the point of the provision: an individual tenant uses their own PAN and the landlord's PAN, with no TAN required. Section 194-I does require a TAN, which is one of the practical differences between the two.
What is Form 26QC and when is it due?
Form 26QC is the challan-cum-statement used to deposit TDS deducted under section 194-IB. It is due within 30 days from the end of the month in which the deduction was made. After filing it, you issue the landlord Form 16C within 15 days as their certificate of the deduction.
What happens if the landlord does not give a PAN?
The rate rises from 2% to 20% under section 206AA. There is an important limit though: the TDS deducted under 194-IB cannot exceed the last month's rent. That cap matters most at the 20% rate, where the uncapped figure would often be more than a month's rent.
Is TDS on rent the same as GST on rent?
No, they are unrelated. TDS is income tax collected at source by the payer and credited against the landlord's tax liability. GST is a consumption tax with entirely separate thresholds and rules. You can owe one and not the other.
Does this apply if my landlord is an NRI?
No. Rent paid to a non-resident falls under section 195, not 194-IB or 194-I, with different rates and procedures including a TAN requirement. This calculator covers resident landlords only — take advice for an NRI landlord.
TDS is decided by records you already keep
Which section applies, and whether you crossed a threshold, comes down to what each tenant paid and for how long. Nestwise keeps that ledger per tenant automatically — rent, months, receipts and co-owner PAN attribution — so the answer is a lookup rather than a reconstruction in March. Free while in early access.
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