What is Form 26QC?

Under section 194-IB of the income tax act, if any individual or HUF to whom tax audit is not applicable makes payment of rent to a resident landlord exceeding Rs. 50,000 per month, then he/she needs to deduct TDS from rent and needs to file Form 26QC. TAN is not compulsory for filing Form 26QC. PAN of the tenant and PAN of the landlord is compulsory.

Who needs to file Form 26QC?

Form 26QC needs to be filed by the tenant of the property, who is making rent payments to the resident landlord. TDS is deducted @ 5% on rent payments made by the tenant.  

When to file Form 26QC?

The due date of payment of TDS on rent is 30 days from the end of the month in which the deduction is made. However, the tenant can file Form 26QC within 30 days from the end of the financial year or within 30 days from the day on which property is vacated/ rent agreement terminated.

For example: If the tenant has made payment of rent during the whole FY 2017-18, then the due date for filing Form 26QC is 30th April 2018. And if the tenant has vacated the place on 31st August 2017 during FY 2017-18 then the due date of filing Form 26QC is 30th September 2018.

FAQs

1. Can I file Form 26QC after the due date?

Yes, Form 26QC can be filed after the due date i.e, after 30 days from the end of the financial year. Late filing of the form will attract a fee of Rs. 200 for every day to be paid by tenant of property. Late filing fees are as per section 234E of the income tax act.

2. What is Form 16C?

Form 16C is the TDS Certificate to be issued by the deductor/ tenant to the landlord/ deductee in respect of the tax deducted and deposited as TDS on the rent of the property.

3. Which form to file if the landlord is Non-resident of India?

If the landlord of the property is NRI, then Form 27Q needs to be filed by the tenant on rent payment of more than Rs. 50,000 per month. Form 27Q needs to be filed quarterly and not annually.