The short answer
Under Section 194-IB of the Income Tax Act, individual tenants paying monthly rent exceeding ₹50,000 must deduct TDS at 2% (or 5% depending on prevailing tax amendments) and deposit it with the government using Form 26QC once per financial year. Commercial properties leased by companies or individuals required to perform tax audits fall under Section 194I with a ₹2,40,000 annual threshold.
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Section 194-IB vs Section 194I at a glance
Understanding which TDS section applies to your rental property:
How landlords verify TDS credit in Form 26AS & AIS
When your tenant deducts TDS under Section 194-IB, they must provide you with Form 16C (TDS certificate). The credited tax automatically reflects in your Annual Information Statement (AIS) and Form 26AS on the Income Tax e-filing portal, allowing you to claim full credit when filing your ITR.
How TenantsFlo tracks net vs gross rent for tax reporting
TenantsFlo allows landlords to record gross rent, TDS deductions, and net payouts in your property ledger. Generate itemized monthly tax statements for your CA in one click. Try TenantsFlo free.