# TDS on Rent Calculator: 194-IB at 2% and 194-I at 10% > TDS on rent calculator for FY 2026-27: 2% under 194-IB for tenants, 10% or 2% under 194-I for businesses, the INR 50,000 a month limit and 20% without PAN. Source: https://trykosh.com/tools/tds-on-rent-calculator Free tool - Business and GST # TDS on rent calculator (194-IB and 194-I) Work out the TDS you must deduct when you pay rent above INR 50,000 a month, whether you're a tenant paying for a home or a business paying for an office or machinery. Rules checked 25 October 2026Free - no sign-upRuns in your browser TDS to deduct (194-IB) INR 15,600 Once, from the last month's rent: pay the landlord INR 49,400 that month Rate**2%** Rent for the period**INR 7,80,000** Landlord gets**INR 7,64,400** Rent: 12 x INR 65,000 INR 7,80,000 TDS at 2% INR 15,600 TDS to deposit INR 15,600 Deduct in March, or in the month you vacate, and deposit with Form 26QC within 30 days of that month's end. No TAN needed. Then give the landlord Form 16C. ## Upload your statement and Kosh does this for you. Upload your bank statements and Kosh separates business from personal spending and keeps your tax and GST dates in view. [Start free](/signup?via=tool-tds-on-rent-calculator) ## How the TDS on rent calculator works Who deducts decides the rule. Individuals and HUFs who don't need a tax audit, typically salaried tenants, follow section 194-IB. Businesses, companies, firms and individuals whose accounts are audited follow section 194-I. The Income-tax Act, 2025 renumbers both but keeps the rates and thresholds, and people still call them by the old names. Under 194-IB, TDS applies when the rent is more than INR 50,000 for a month or part of a month. The rate is 2% (cut from 5% in October 2024). You deduct it once a year, from the rent for March or the month you vacate, on the rent for the whole period. You don't need a TAN: pay through Form 26QC within 30 days of the end of that month and give the landlord Form 16C. Under 194-I, the threshold is also INR 50,000 for a month or part of a month, from 1 April 2025. The rate is 10% for land, buildings and furniture and 2% for plant, machinery and equipment. Deduct every month when rent is paid or credited, deposit by the 7th of the next month using your TAN, and file Form 26Q each quarter. TDS is on the rent excluding GST if GST is shown separately. If the landlord doesn't give a PAN, the rate is 20%. For 194-IB the deduction is capped at the last month's rent, so the tenant never withholds more than one month's payment. 194-IB: TDS = 2% x rent for the period (once); 194-I: TDS = 10% or 2% x monthly rent (each month) No PAN 20%; under 194-IB capped at the last month's rent ## Worked example: The Raos, renting in Gurugram from August Vikram and Leela Rao moved into a Gurugram flat in August 2026 at INR 72,000 a month. They're salaried, so 194-IB applies. Over August to March they pay INR 5,76,000 in rent. TDS at 2% is INR 11,520, deducted once from March's rent, so the landlord receives INR 60,480 that month. They file Form 26QC by 30 April 2027 and send the landlord Form 16C. TDS to deduct (194-IB) INR 11,520 Once, from the last month's rent: pay the landlord INR 60,480 that month Rate**2%** Rent for the period**INR 5,76,000** Landlord gets**INR 5,64,480** Rent: 8 x INR 72,000 INR 5,76,000 TDS at 2% INR 11,520 TDS to deposit INR 11,520 Deduct in March, or in the month you vacate, and deposit with Form 26QC within 30 days of that month's end. No TAN needed. Then give the landlord Form 16C. [Load this example into the calculator ->](?rent=72000&months=8#calculator) ## Good to know - If you share a flat and each tenant pays the landlord separately, the INR 50,000 test is generally applied to each tenant's own share. - A late Form 26QC attracts a fee of INR 200 a day plus interest on the TDS, so put a reminder for April. - Tenants claiming HRA should still give their employer the landlord's PAN when rent exceeds INR 1 lakh a year, whether or not TDS applies. - Paying a non-resident landlord falls under a different rule (section 195) at much higher rates, and you'll need a TAN. ## Frequently asked questions Do I need to deduct TDS on house rent? Only if your rent is more than INR 50,000 for any month. If so, deduct 2% under section 194-IB once in the year, from March's rent or the last month of the tenancy. Below INR 50,000 a month, no TDS applies. What is the TDS rate on rent for companies? Under section 194-I, 10% on rent for land, buildings and furniture, and 2% on rent for plant, machinery or equipment, when rent exceeds INR 50,000 for a month or part of a month. It's deducted every month. What happens if my landlord doesn't have a PAN? TDS goes up to 20%. Under 194-IB the deduction can't exceed the rent for the last month of the year or tenancy. Under 194-I there's no such cap. Is TDS on rent deducted on GST too? Under 194-I, if the agreement or invoice shows GST separately, TDS is deducted on the rent excluding GST. Most residential rent to individuals carries no GST at all. How do I pay TDS on rent without a TAN? Tenants under 194-IB use Form 26QC on the income-tax e-filing portal, which works with your PAN and the landlord's PAN. Pay within 30 days from the end of the month of deduction, then download Form 16C from TRACES for the landlord. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.