Form 26QC : TDS on Rent of Property

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. And Form 26QC needs to be filed on TIN NSDL. TAN is not compulsory for filing this form. PAN of the tenant and PAN of the landlord is compulsory.

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. TDS is deducted @ 5% on total rent payments made by the tenant.  

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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:

  1. The end of the financial year or
  2. The day on which property is vacated/ rent agreement terminated.

For example: If the tenant has made payment of rent during the whole FY 2019-20, then the due date for filing Form 26QC is 30th April 2020. And if the tenant has vacated the place on 31st August 2019 during FY 2019-20 then the due date of filing Form 26QC is 30th September 2019.

How to file Form 26QC?

  1. Go to TIN NSDL website,

    Go to Services> Select TDS on Rent of Property.

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

    From the left-hand site list.

  3. Fill the details in the form

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

  4. Make payment of TDS and save the acknowledgement

    Payment can be made wither immediately or on a later date. An acknowledgment will be generated upon successful submission.

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. Late filing of the form will attract a fee of Rs. 200 for every day to be paid by the tenant of the property. Late filing fees are as per section 234E of the income tax act.

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.

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.

Got Questions? Ask Away!

  1. 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!

  2. 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!

  3. Hi @KrishnaAgarwal

Continue the conversation on TaxQ&A

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