As per the Finance Act 2017, if any individual or HUF to whom tax audit is not applicable makes payment of rent to a resident landlord exceeding INR 50,000 per month, then they are required to deduct TDS u/s 194IB. Also, Form 26QC needs to be filed by the tenant on TIN NSDL. This section is being introduced to cover the high rental income group within the preview of tax.
Who needs to file Form 26QC?
The tenant of the property, who is making rent payments to the resident landlord needs to file this form. Also, TDS is deducted at 5% of the total rent payments made by the tenant.
When to deduct TDS?
TDS should be deducted once in a financial year. Further, It can be deducted either at the time of credit of rent to the account of the payee for the last month of the financial year. Also, if the property is vacated during the financial year then tax will be deducted in the last month of tenancy.
When to file Form 26QC?
The tenant can file Form 26QC within 30 days from:
- The end of the financial year or
- The day on which the property is vacated/ rent agreement terminated.
Let’s understand this with the help of an example:
Ram is paying a rent of INR 75000 per month. He will deduct TDS at the rate of 5% on the whole amount in the month of March. The total TDS amount will be INR 45,000 (INR 9,00,000*5%). Now, this TDS amount should be deposited along with Form 26QC within 30 days from the end of the financial year i.e. before 30th April.
What details are required to file Form 26QC?
The following details are required to file Form 26QC:
- PAN of the tenant as well as of the landlord
- Address of the tenant and landlord
- Period of tenancy
- Total value of rent payable
- Value of rent paid in last month
- Date of payment/credit
- Total amount paid/credited
- Date of tax deduction
How to file Form 26QC?
You can file the form in the following manner:
- Go to the TIN NSDL website,
Go to Services> Select TDS on Rent of Property.
- Click on the Online form for furnishing TDS on Rent of Property (Form 26QC)
From the left-hand site list.
- Select Form 26QC
Select TDS on Rent of Property
- Fill the details in the form
Details of Tenant, Landlord, Property, TDS, etc needs to be added.
- Make a payment of TDS and save the acknowledgment
Payment can be made either immediately or at a later date. An acknowledgment will be generated upon successful submission.
TDS Certificate
If the tenant has deducted TDS on the rent of the property, then they are required to provide a certificate in Form 16C to the landlord within 15 days from the date of filing the form.
FAQs
Yes, It can be filed after the due date i.e., after 30 days from the end of the financial year. But it will attract a fee of Rs. 200 for every day to be paid by the tenant of the property.
Form 26QB is a challan-cum statement for TDS on the sale of the property. While Form 26QC is a statement for TDS on the rent of the property.
If the landlord of the property is Non-resident, then Form 27Q needs to be filed by the tenant irrespective of any rent payment. Form 27Q needs to be filed quarterly and not annually.
The acknowledgment number can be retrieved in the following ways:
1. From TIN NSDL by entering the PAN of the tenant and landlord, Total amount, and Financial year.
2. From TRACES.
Hey @HarshitShah
Yes, in case you have not deposited TDS by the due date, the following penalties might be applicable:
Interest (if you do not deposit the TDS amount in time)
Late filing fee (if you do not file by the deadline)
Penalty (if TDS is not filed within one year of the due date)
Hope this helps!
Hey @HarishMehta
Form 24, 27 and 27E are forms to file TDS/TCS returns:
Form 24 is to file TDS return detailing Salary Payments
Form 27 is to file TDS return detailing Foreign or NRI payment other than salary
Form 27E is to file TCS returns
Hope this helps!
Hi @KrishnaAgarwal
Hey @taxpayer, you can file your Income-tax return can claim the tax refund for any excess tax credits available to you.
If your total taxable income is below the basic exemption limit then you won’t have any tax payable.
You can check the total tax credits available to you in your Form 26AS
@Muskan_Balar @Bharti_Vasvani can you help here?
Hello @abhaykk90,
As per section 194IB of the income tax act, if you’re liable to deduct TDS on rent paid, the rate applicable will be 5%.
Hope this helps!
Hi @t_bovee,
Here are answers to your various questions
However, you can file TDS return 26QC within 30 days from the end of the financial year.
Here’s a read on What is Form 26QC? Who needs to file form 26QC? - Learn by Quicko for your reference. Hope this helps.
Hi @t_bovee
It would not be possible for us to tell you the mismatch of amounts, without seeing the documents.
However, for expert assistance with your taxes, here’s how you can Book a MEET.
Hi @paliya_hitesh
Here’s read on Form 26Q: TDS on other than Salary - Learn by Quicko for your refrence.
Thank you for the reference @Shrutika_Shah