Form 26QC: TDS on Rent of Property

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Hiral Vakil

Form 16C
Form 26QC
TDS
TIN NSDL
Last updated on April 5th, 2023

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:

  1. The end of the financial year or
  2. 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:

How to file Form 26QC?

You can file the form in the following manner:

  1. Go to the TIN NSDL website,

    Go to Services> Select TDS on Rent of Property. TIN NSDL_Rent_on_property

  2. Click on the Online form for furnishing TDS on Rent of Property (Form 26QC)

    From the left-hand site list.TIN_NSDL_Select_Form26QC

  3. Select Form 26QC

    Select TDS on Rent of Property

  4. Fill the details in the form

    Details of Tenant, Landlord, Property, TDS, etc needs to be added.TIN_NSDL_fill_Form26QC

  5. 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.

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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

Can I file Form 26QC after the due date?

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.

What is the difference between Form 26QB and 26QC?

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.

Which form is to be filed if the landlord is a Non-resident of India?

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.

What if I forgot to save the acknowledgment number generated in Form 26QC?

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.

Got Questions? Ask Away!

  1. Hi @Chirag_Hota

    You may follow these steps to File Form 26QC from Income Tax Portal

    1. Visit the Home | Income Tax Department
    2. Navigate to e-File > e-Pay Tax
    3. Click on New Payment tab from right side
    4. Scroll down and select the tab “TDS on Rent of Property (Form 26QC)”
    5. Form 26QC is organized in the following manner
      a. Add Tenant Details
      b. Add Landlord Details
      c. Add Property Rented Details
      d. Add Payment Details
    6. Enter all the required details and make the payment.
    7. Once the payment is made, a challan identification number (CIN) will be generated, which should be saved for future reference.

    Hope it helps.

  2. Hi @Ankit_Jain

    Here’s attaching a screenshot for your reference,

    You can check, there is an option 26 QC (TDS on Rent of Property), then, click Proceed to move further.

    Hope it helps.

  3. These are the steps

    1. Go to Home | Income Tax Department
    2. Click login
    3. Login with your details.
    4. Then from the top menu “e-file” → “epay-tax”
    5. Then click “new payment” option
    6. finally you get the old screen.
  4. Hi @ujjwalc

    If you’re a tenant of the property, who is making rent payments to the resident landlord need to deduct TDS once in a financial year, which is the last month of the financial year.

    You’re required to file Form 26QC within 30 days from

    • The end of the financial year, which is 30th April, or
    • The day on which the property is vacated/ rent agreement terminated.

    Here’s more you can read about Form 26QC: TDS on Rent of Property - Learn by Quicko.

  5. Hi @Kuruba_Dinesh

    Form 16 is a TDS certificate on salary. It is issued by employers to their employees at the end of FY.

    As you mentioned you have paid the TDS amount u/s 194IB, which is for TDS deduction on rent paid by individuals. So in that regard, you are required to download Form 16A.

    Form 16A is different from Form 16. Form 16A is for TDS on income other than salary.

    Here are the Steps to Download Form 16A from TRACES Portal - Learn by Quicko.

    Hope this helps.

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