Section 194IB — Rent paid by Individual / HUF (not covered by 194I)

# Section 194IB — TDS on Rent paid by Individual / HUF

## Who deducts?

Individual / HUF not covered under Sec 194I (i.e., whose business / profession turnover is below 44AB limits, or who have no business at all).

## Threshold

Rent > ₹50,000 per month (or part of month).

## Rate

2%. (Earlier 5% — reduced by Finance Act, 2024 w.e.f. 1.10.2024.)

## When to deduct?

Once in a financial year — at the time of credit of rent for the last month of the FY (or last month of tenancy if tenancy vacated earlier), OR at the time of payment — whichever is earlier.

## Notes

• No TAN required; payment through Form 26QC.
• TDS limited to rent of the last month if landlord's PAN unavailable (avoid 206AA cascading).