FORM 26QC : Complete Process

 Are you a tenant paying rent? Here’s what you need to know! 

Did you know that if you are paying rent of more than Rs.50,000 per month, you must deduct TDS and file FORM 26QC?

 What is FORM 26QC? FORM 26QC is a mandatory form that must be filed by the tenant, who is responsible for paying rent to a resident landlord. TDS at a rate of 5% needs to be deducted on the rent paid.

 Due Date for Filing FORM 26QC: The tenant must file FORM 26QC within 30 days from the end of the financial year, the date the property is vacated, or the termination of the rent agreement—whichever comes first.

For FY 2024-25, the last date to file is 30th April, 2025.

 Where to file FORM 26QC? You can easily file FORM 26QC on the Income Tax Portal.

For a detailed guide on how to file FORM 26QC, check out the link below! 

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Online TDS payment procedure under Section 194-IB

1. Login to the Income Tax Portal : https://www.incometax.gov.in/iec/foportal/
2. Once Logged in, Go to E-file >>  E- Pay Tax.

1. Select on New Payment >> 26QC (TDS on Rent of Property)

1. Fill in the details of the tenant. Add landlord details like PAN and address. Provide details on rent being paid and TDS deduction details. Proceed with payment of tax after you have entered the above details.

Enter the period of tenancy, rent value and other relevant details.

1. Once submitted, note the payment acknowledgement number for future reference. You can download Form 26QC and print it for documentation purposes.

1. FORM 16C reflects the amount of TDS deducted on rent at 5% by the individual/HUF (u/s 194IB). FORM 16C can be downloaded only from the TRACES portal. You will have to register and log in as a Taxpayer. Under download, you can request for Form 16C generation which will later be available in Requested Download.