Answer

1. F

   Facts

   Two different TDS sections cover rent, and most tenants confuse them. Section 393, Income-tax Act 2025 (old Sec 194-I): for companies and specified persons paying rent above ₹2.4L/year, deduct 10% every month. Section 393 (old Sec 194-IB): for individuals paying rent above ₹50,000/month, deduct 5% in March (one time per year). Missing this creates TDS default even for ordinary salaried tenants.

2. P

   Provisions and law

   • Sec 393 (old 194-I)
   • Sec 393 (old 194-IB)
   • Rule 218 (old Rule 30)
   • Sec 398 (old 201)
3. A

   Analysis

   Which section applies to you: You are a company/firm/LLP paying office rent: Section 393 (old Sec 194-I) applies. Deduct 10% every month, deposit by 7th of next month, file quarterly Form 140 (old Form 26Q). You are an individual (salaried or self-employed) paying rent > ₹50,000/month for your residence: Section 393 (old Sec 194-IB) applies. Deduct 5% of full year's rent in March. File Form 141 (old Form 26QC; not Form 140 (old Form 26Q)). Issue Form 132 (old Form 16C) to landlord. Sec 393 (old Sec 194-IB), the salaried tenant rule: Office rent for your residential flat: ₹55,000/month. You are a salaried individual, not subject to tax audit. Section 393 (old Sec 194-IB) applies. Annual rent: ₹6,60,000. TDS in March: 5% × ₹6,60,000 = ₹33,000. Deduct from March rent payment. Pay ₹22,000 to landlord in March instead of ₹55,000. Deposit ₹33,000 TDS by April 30. File Form 141 (old Form 26QC) by April 30. Issue Form 132 (old Form 16C) to landlord by May 15. Landlord PAN mandatory for Sec 393 (old Sec 194-IB): Sec 393 (old Sec 194-IB) requires landlord's PAN.

4. C

   Conclusion

   1. 1Identify which section: company/firm paying rent → Sec 393 (old Sec 194-I). Individual paying > ₹50K/month → Sec 393 (old Sec 194-IB)
   2. 2Check threshold: Sec 393 (old Sec 194-I): annual rent > ₹2.4L. Sec 393 (old Sec 194-IB): monthly rent > ₹50,000.
   3. 3Collect landlord PAN, mandatory for TDS deduction (without PAN: 20% rate)
   4. 4Sec 393 (old Sec 194-I; company): deduct 10% from each monthly rent. Deposit by 7th of following month. File Form 140 (old Form 26Q) quarterly.
   5. 5Sec 393 (old Sec 194-IB; individual): compute 5% of annual rent. Deduct from last month rent (March). Deposit by April 30.
   6. 6Sec 393 (old Sec 194-IB): file Form 141 (old Form 26QC) on TRACES portal within 30 days of deduction

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