Form 26QC is a challan-cum-return statement for reporting the transactions liable to TDS on Rent u/s 194-IB.
Explains TDS on Rent, applicability, threshold limits, rates of TDS, Time of Deduction, requirements to prepare TDS return and filing TDS under Section 194-IB
It is very common for individual / HUF to pay rent for residential / office purposes. Budget 2017 has amended the TDS on Rent provisions and brought the section 194-IB w.e.f 01st Jun 2017, which is to cover renting a building / premises. If you come under this section, you may need to file your TDS using Form 26QC, refer below on applicability and how to File your TDS.
Note: The individuals / HUF / Companies / Partnership Firms / LLPs who are covered under Tax Audit are required to deduct TDS u/s 194I @ 2% (Renting for Plant & Machinery) / 10% (Renting of Building / Premises) through Form 26QA. Form 26Q and Form 26QB are different forms .. kindly understand this note before attempt to file your return. If any questions, Contact Team EZTax.in
Rent means any payment by whatever name called, under any lease, sub lease, tenancy, or any other agreement or arrangement for the use of land or building or both
Any individual or HUF other than those individual/HUF whose books are liable for tax Audit are required to deduct the TDS on the payment of rent.
TDS is required to be deducted if the rent per month or part of month exceeds Rs 50,000
The rate of TDS to be deducted on rent payable is 5%.
Note: The rate of TDS on rent payments made between 14th May 2020 to 31st Mar 2021 is 3.75% due to COVID-19 Pandemic.
The TDS needs to be deducted on the following times whichever is earlier.
TAN is not required for deduction of TDS u/s 194-IB
PAN of Deductee (Landlord/Lessor etc) is required for the person paying rent. If there is no PAN of deductee, TDS needs to be deducted @ 20%. However, the total TDS should not exceed rent payable for last month.
Important: If the building / premises is owned by multiple owners, Form 26QC to be filled & paid for each Owner based on the % of ownership agreed or in the rental agreement.
The TDS deducted u/s 194-IB should be deposited to Government in Form 26QC (Challan cum Return)
Form 26QC is a challan cum return statement for reporting the transactions liable to TDS on Rent u/s 194-IB, which needs to be filed every following month after the payment.
Due Date: The Due date of filing Form 26QC is within 30 days from the end of month in which the tax deduction is made
For example, Mr Ram has paid the rent in the month of April 2021, he needs file form 26QC by May 30.
Form 26QC can be filed using https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Required Details for Filing Form 26QC: The following are the required details
Important: It is advised to have all the above information handy before start filling the form as you have to complete within 30 mins from the start
Form 26QC is organised in the following manner