Formula & Calculation Methodology
If monthly rent > ₹50,000: TDS = Annual Rent * 5% (or 20% if Landlord PAN missing).
Step-by-Step Worked Example
Monthly Rent: ₹65,000 (Annual: ₹7,80,000)
- Annual TDS (5%): ₹39,000
- Net Rent in March (Last Month): ₹65,000 - ₹39,000 = ₹26,000
Result: Deposit ₹39,000 via Form 26QC Challan and issue Form 16C to Landlord
Frequently Asked Questions
Does the tenant need a TAN number for 194-IB?
No, individual tenants only need the Landlord PAN and their own PAN to file Form 26QC.
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