Section 194IB: TDS on rent by individuals/HUF
Section 194IB of the Income-tax Act, 1961 covers TDS on rent by individuals/HUF. From 1 April 2026 the same deduction sits in Section 393(1), Table Sl. No. 2(i), Income-tax Act, 2025. The rate, threshold and conditions below were read from incometaxindia.gov.in on 13 October 2026.
Section 194IB at a glance
| Nature of payment | Income by way of rent for land, building (incl. factory building) or land appurtenant to a building only (s.402 'rent' restriction for Sl. 2(i)) |
|---|---|
| Who deducts | Person other than a specified person (i.e. individuals/HUF not exceeding the Rs 1 crore business / Rs 50 lakh profession turnover limits) |
| Threshold | Rs 50,000 for a month or part of a month |
| Income-tax Act, 2025 | Section 393(1), Table Sl. No. 2(i), Income-tax Act, 2025 |
| Payee without PAN | Highest of the rate below, the rates in force, or 20% |
TDS rate
| Payee | Rate |
|---|---|
| Any resident | 2% |
Rates exclude surcharge and health and education cess.
Conditions and exceptions
- Deduct once, at the earlier of credit or payment for the last month of the tax year or last month of tenancy (Note 1 to Sl. 2).
- 'Specified person' (s.402 cl.37): any person other than individual/HUF, or an individual/HUF whose turnover/gross receipts exceeded Rs 1 crore (business) or Rs 50 lakh (profession) in the preceding tax year - per incometaxindia.gov.in/w/section-402-5.
Which Act applies to your payment
The 1961 Act governs a payment if it was credited or paid on or before 31 March 2026, whichever happened first. If both happen on or after 1 April 2026, the 2025 Act applies.
Source and verification
Income Tax Department: Section 393(1), Table Sl. No. 2(i), Income-tax Act, 2025 →
Last verified on 13 October 2026. Finance Acts change TDS rates and thresholds; check the source before you deduct. This is general information, not advice for your situation.
Related
Frequently asked questions
What is the TDS rate under section 194IB?
2% for any resident. Rates exclude surcharge and cess.
What is the threshold for TDS under section 194IB?
Rs 50,000 for a month or part of a month. Below this, no tax is deducted.
What is section 194IB called under the new Income-tax Act?
From 1 April 2026 it is Section 393(1), Table Sl. No. 2(i), Income-tax Act, 2025. The e-filing portal's TDS FAQ says the rates and thresholds were carried over; the section number is what changed.
What if the payee has no PAN?
Section 397 of the 2025 Act requires deduction at the highest of the rate above, the rates in force, or 20%.
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