How-to · Tax
TDS on rent: 194-I and 194-IB until March, section 393 from April 2026
Which rent TDS provision applies, why an individual tenant is not on the same form as a company, how the Income-tax Act, 2025 moves both into the section 393(1) table, and when Form 26QC becomes Form 141.
In this guide
Rent TDS depends on who the tenant is. A specified payer uses section 194-I until 31 March 2026 and the rent rows of section 393(1) from 1 April 2026. An individual or HUF below the tax-audit line uses section 194-IB, then table sl. no. 2(i), and files Form 26QC or Form 141. Rates and thresholds stayed the same. Confirm the row on the official TDS FAQ before the first April payment.
Two rent provisions, not one
Search still says "TDS on rent" as if there is one section. There are two, and they file on different forms.
| Tenant | Until 31 March 2026 | From 1 April 2026 |
|---|---|---|
| Individual or HUF below the tax-audit line, paying rent for land or building | Section 194-IB, Form 26QC | Section 393(1) table sl. no. 2(i), Form 141 |
| Company, firm, or other specified payer (including an individual or HUF who had to get accounts audited) | Section 194-I, Form 26Q | Rent rows of section 393(1), Form 26Q |
The department's January 2026 note on 194-IB is the working text for the individual tenant: deduct 2 per cent when the rent exceeds ₹50,000 for a month or part of a month. A specified payer is not on that form. That payer is on 194-I, with separate rates for plant and machinery and for land, building and furniture. The official FAQ says those rates and thresholds were kept when the 2025 Act restated them in the 393 table.
The earlier of credit or payment decides the Act
Rent is not salary. The official TDS Compliance FAQ is explicit: the Act that governs a non-salary deduction is the Act in force on the earlier of credit or payment.
March rent credited on 31 March 2026 is still 194-I or 194-IB, even if the cheque clears in April. April rent credited on 30 April 2026 is a 393 payment. Paying March rent late in April does not move it into the new Act.
Deposit and return dates stay on the same operational calendar. See TDS payment due dates and the Form 26Q map. Late deposit of March tax still attracts 1.5 per cent a month from the date of deduction. The new Act is not a defence.
Form 26QC until March, Form 141 from April
Form 26QC is the challan-cum-statement for 194-IB. It is not a quarterly return. You deposit and report in one filing, within 30 days from the end of the month of deduction.
The official FAQ, question 9, lists the four old forms that work that way: 26QB (property), 26QC (this rent), 26QD (194M), 26QE (virtual digital assets). Those forms continue only where the earlier of credit or payment was on or before 31 March 2026. From 1 April 2026 the same four transactions share Form 141 under the Income-tax Rules, 2026.
A specified payer never used 26QC and does not move to Form 141 for ordinary office rent. That deduction stays on the quarterly 26Q. Quoting 194-I on an April 2026 26Q is the error the FAQ warns about: the rate is the same, the processing will not be.
How the landlord gets credit across the cutover
Credit follows the year the income is assessable, not the day the tenant deposited the challan.
- Tax deducted on March 2026 rent sits in AIS for AY 2026-27, even if Form 26QC was filed after 1 April.
- Tax deducted on April 2026 rent sits in Form 168, the annual information statement for tax year 2026-27.
The official FAQ says those two statements are generated separately. A landlord who looks only at last year's AIS in August will think April TDS is missing. It is on the other statement.
If the numbers still do not match, tell the tenant and have them file a correction. The usual cutover error is the old section number on a new-year line, or Form 26QC filed for an April payment that already needed Form 141.
How to confirm on official pages
- Read questions 1 to 4 and question 9 on the official TDS Compliance FAQ. Those answers are the cutover.
- Open section 393 for payments from April 2026 and find the rent row that matches the tenant.
- File 26QC, Form 141, or 26Q only through e-Filing / TRACES. A spreadsheet is not a return.
Match the landlord's side against 26AS and AIS for AY 2026-27, and against Form 168 for tax year 2026-27.
Where Complied AI fits
The two-provision split and the Form 141 cutover are in the department's own FAQ. What still moves is a utility, a form notification, or a correction to the TDS table. CBDT updates on Complied AI keep those next to section 393 so a tenant is not quoting 194-IB on an October 2026 26QC.
Practical checks
Common questions
Who deducts TDS on rent under 194-IB?
An individual or HUF whose turnover or professional receipts in the previous year stayed within the tax-audit line. The department's January 2026 note on 194-IB puts that line at ₹1 crore of business turnover or ₹50 lakh of professional receipts. The tenant deducts 2 per cent if the rent exceeds ₹50,000 for a month or part of a month.
Does a company use Form 26QC for office rent?
No. Form 26QC is the challan-cum-statement for section 194-IB. A company, firm, or other specified payer is on section 194-I until 31 March 2026 and on the rent rows of section 393(1) from 1 April 2026. That deduction is reported on the regular quarterly TDS statement, not on Form 26QC.
Which form do I file for 194-IB rent paid in April 2026?
Form 141. The official TDS Compliance FAQ says the four old challan-cum-statements (26QB, 26QC, 26QD, 26QE) continue only where the earlier of credit or payment was on or before 31 March 2026. From 1 April 2026 those four transactions share Form 141 under the Income-tax Rules, 2026.
Did rent TDS rates change under the Income-tax Act, 2025?
The official FAQ says TDS rates and monetary thresholds were retained. Section 393 is a tabular restatement. The section number on the return changes. The 2 per cent 194-IB rate and the ₹50,000-a-month line did not.
Publication method
How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 17 August 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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