ITR
Tenant deducted rent TDS but did not deposit it
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Facts
Individual tenants paying rent above ₹50,000 a month deduct TDS and pay it through Form 26QC. If the tenant did not file 26QC or made an error, your credit is missing. The tenant must pay and file it, then give you Form 16C.
Provisions and law
- Sec 194IB (now Sec 393)Individual tenants paying rent above ₹50,000 a month deduct TDS and file Form 26QC
- Sec 199, Income-tax Act 1961TDS deducted and paid to the government is treated as tax paid on your behalf and credited as per the Rules
Analysis
Under Sec 194IB (now Sec 393), the tenant files a challan cum statement and issues Form 16C. If the tenant kept the money, you received less rent and can show it, and the department can recover it from the tenant with interest. Ask for the acknowledgement and certificate in writing. Report the full rent in your return and claim only the credit you can support.
Conclusion
- Ask the tenant for the 26QC acknowledgement and Form 16C.
- Check the details against your PAN and rent.
- Request correction for any errors.
- Raise a grievance if the tenant does not respond.
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TDS deducted but not credited: claim and grievance
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