The 60-second version
Section 194IB requires individual or HUF tenant (not subject to audit) to deduct 5% TDS once per year on rent above ₹50,000/month — deposit via challan 281, give landlord Form 16C.
194IB needs no TAN — one annual deduction
Section 194IB applies to individual/HUF tenants not liable to tax audit paying rent above ₹50,000 per month.
Deduct 5% once in last month of FY or last month of tenancy — deposit via challan 281 without TAN.
Commercial lane: Section 194I guide.
194IB vs 194I
| Section | Rate | Tenant |
|---|---|---|
| 194IB | 5% | Individual > ₹50k/month |
| 194I | 10% | Tenant rent > ₹2.4L/year |
| 195 | 30%+ | Rent to NRI landlord |
| 80GG | Deduction | Self-employed no HRA |
194IB sequence
Confirm rent
> ₹50,000/month.
Landlord PAN
Mandatory.
Deduct 5%
Once annually.
Challan 281
No TAN needed.
Form 16C
Give landlord.
Flow
194IB kit
- Landlord PAN.
- Rent agreement.
- Challan receipt.
- Form 16C copy.
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No TAN
Unique feature of 194IB — individual tenant uses PAN on challan.
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Turn this guide into a decision file
0 of 4 checked
₹45k/month?
Below threshold — no 194IB.
Office rent?
Usually 194I at 10% — not 194IB.
No landlord PAN?
Cannot deduct — insist on PAN.
NRI landlord?
Section 195 — not 194IB.
Form 16C?
Tenant-issued TDS cert for landlord — not Form 16A.
Audit case?
194I applies if tax audit — not 194IB.
Your tax year is already running.
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