TDS on Rent: Section 393 (old 194-I; Commercial) and Section 393 (old 194-IB; Residential)

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.

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.