Filing Form 26QC

Hi due to change in the rate you have to file 2 26QC forms, 1st for April to September and 2 nd for October to March 

- U/s 194-IB, tax shall be deducted from the rent payment of the last month of the financial year or in the month when property is vacated. Deduct TDS@2% in the month of March 2025. Ensure PAN of the landlord is linked with the Aadhaar

For detailed discussion you may opt for phone consultation

You may choose to use weighted average rate or file 26QC twice - one for the first Half year and the other one for second half year

Whenever you are deducting TDS you have to see the rate at that point if you are deducting once and if that is at the end of year you need to take 2% rate.

Hope you find above information helpful if yes please rate it 5.

Thank you

For rent payments under Section 194-IB where TDS is deducted annually:

1. Timing of TDS Deduction:

   • TDS should be deducted from the last month's rent (March 2025)
   • Or when you vacate the property, whichever is earlier

2. Calculation for FY 2024-25:

   • April 2024 to September 2024 (6 months): 5% rate applies
   • October 2024 to March 2025 (6 months): 2% rate applies

3. How to Calculate and Deduct:

   • For rent paid during April-September 2024:

     • Monthly rent × 6 months × 5%

   • For rent paid during October 2024-March 2025:

     • Monthly rent × 6 months × 2%

   • Add both amounts to get total TDS

4. Filing in Form 26QC:

   • Use the rate applicable at the time of deduction (2%)
   • Since deduction is made in March 2025, you'll use the 2% rate
   • The total TDS amount calculated above should be deducted from March 2025 rent

5. Important Requirements:

   • Ensure landlord's PAN is linked with Aadhaar
   • File Form 26QC within 30 days of TDS deduction
   • Issue Form 16C to landlord

- Liability to deduct TDS arises in the month of March 2025 therefore rate of TDS should be 2%

- You can file two different Form 26QC on same date 

For detailed discussion you may opt for phone consultation

You cannot technically file Form 26QC now with 5% TDS unless you wish to pay interest and late fees.