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Income Tax Filing For Those Who Pay Rent Of Over Rs 50K

If you are living in a rented accommodation paying a high amount of rent, you are required to deduct TDS (tax deducted at source). All you have to do is to submit the same to the Income Tax Department. According to the new Act from June 1, 2017, those who pay monthly rental payments more than Rs 50,000 are required to deduct 5% TDS on it.

The latest campaign of Income Tax Department’s informs that individuals or HUFs paying monthly rent to a resident in excess of Rs 50,000 need to deduct and deposit TDS @5% under section 194-IB of the I-T Act 1961 at the time of deposit of rent, for the last month of the Financial Year or in the month in which premises are vacated or the agreement is terminated.

These individuals are requested to upload details of the tax deducted along with correct PAN of the landlord in Form No 26QC on TIN website ( The tenant, however, is not required to obtain TAN. One can download the TDS certificate and issue to the landlord in in Form No 16C from the TRACES website ( within 15 days of uploading the Form No 26QC.

One should also note that deducting tax at source is a step by the Income Tax Department in order to avoid tax evasion. This is just based on the principle ‘Pay as you earn’. All the payers are required to make TDS deductions, irrespective of the mode of payment, which can be cash, cheque or credit.

Chetan Chandak, Head of Tax Research, H&R Block India informs “There are different TDS rates that are applicable to residents and non-resident taxpayers, as well as to different domestic and international companies operating in India. Any individual responsible for making any type of payment must deduct TDS at applicable rates and deposit it with the government within the specified time. TDS rates may vary depending on the nature of the income earned and whether the person to whom payment is being made is an individual or a company”


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