Points to be remembered by the Tenant of the Property: Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.ĭetailed procedure, list of Bank branches authorized to accept TDS and Frequently Asked Questions (FAQs) are available on this website for reference.

Section 194-IB of the Income Tax Act, 1961 states that for all the transactions with effect from June 1, 2017, tax 5% or 3.75% should be deducted (depending upon the Date of Payment/Credit to the Landlord) by the Tenant/ Lessee/ Payer of the property at the time of making payment of rent (to Landlord / Lessor/ Payee). As per Finance Act, 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUFs (Hindu Undivided Family) (other than an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid) responsible for paying to a resident monthly rent exceeding ₹ 50,000.

Traces form 26as download