TDS on Rent Calculator for FY 2026–27
Estimate tax deduction on regular monthly rent paid to one resident landlord under Section 393. The calculator classifies the payer, checks the strict ₹50,000 monthly threshold, applies the 2%, 10% or no-PAN rate, and shows the current forms and due dates.
Last Updated: July 29, 2026Calculate TDS on rent under Section 393
Enter the monthly rent attributable to one landlord. For an individual or HUF payer, actual preceding-tax-year turnover determines which rent-TDS route applies.
2% on total rent for the selected tenancy period.
| Result item | Calculated value |
|---|---|
| Current provision | Section 393(1), Table 2(i) |
| Legacy search term | Section 194-IB |
| Threshold check | Monthly rent exceeds ₹50,000 |
| Rental period | April 2026 to March 2027 |
| Normal deduction timing | Last month of tax year or tenancy |
| PAN cap | Not needed with valid PAN |
| Estimated TDS | ₹14,400 |
Compliance route
Month-wise payment view
| Month | Rent | TDS | Net rent | Deposit or filing note |
|---|
This estimate covers one resident landlord and constant monthly rent. It does not determine treatment of mixed assets, advances, arrears, adjustable deposits or an exemption certificate.
TDS on rent rules for Tax Year 2026–27
From 1 April 2026, the Income-tax Act, 2025 governs current rent payments. Section 393(1), Table serial number 2 now contains the two resident-landlord rent-TDS routes that many users still search for as Section 194-IB and Section 194-I. Those older labels remain helpful for comparison, but they are not the operative section numbers for a deduction event on or after 1 April 2026.
The tool intentionally does not estimate rent paid to a non-resident. Non-resident withholding depends on separate provisions, income chargeable in India, rates in force, possible surcharge and cess, treaty relief and any lower-deduction certificate. Showing zero in that situation would be misleading, so the result instead directs the user to a separate review.
How to use this TDS on rent calculator
- Select whether the tenant or payer is an individual/HUF or another person such as a company or firm.
- If the payer is an individual or HUF, enter the immediately preceding tax year's business turnover and professional receipts. Enter zero where a category does not apply.
- If the result is a specified payer, select whether the rented asset is property/furniture/fittings or machinery/plant/equipment.
- Enter the monthly rent attributable to one landlord and select the first and last month in Tax Year 2026–27.
- Confirm the landlord's residence and whether a valid PAN was furnished.
- Review the applicable section, threshold, TDS amount, last-month cap, deduction timing and current filing route.
Amounts accept plain digits, Indian grouping and western grouping. For example, 60000, 60,000 and 60,000.00 produce the same input. Currency symbols, negative numbers, exponent notation and malformed commas are rejected. The first month must not fall after the last month.
Current rent TDS rates and payer categories
| Payer and rent type | Current provision | Rate with PAN | Threshold | Normal timing |
|---|---|---|---|---|
| Individual/HUF that is not a specified person; land, building or appurtenant land | Section 393(1), Table 2(i) | 2% | Rent exceeds ₹50,000 for a month or part | Last month of tax year or tenancy |
| Specified payer; land, building, appurtenant land, furniture or fittings | Section 393(1), Table 2(ii) | 10% | Rent exceeds ₹50,000 for a month or part | Credit or payment, whichever is earlier |
| Specified payer; machinery, plant or equipment | Section 393(1), Table 2(ii) | 2% | Rent exceeds ₹50,000 for a month or part | Credit or payment, whichever is earlier |
Who is a specified payer?
Section 402 defines a specified person for these resident-payment rules. Every payer other than an individual or HUF is specified. An individual or HUF is also specified when business turnover in the immediately preceding tax year exceeds ₹1 crore or professional gross receipts exceed ₹50 lakh.
The prior "tax audit applicable" shortcut is not used because it can classify a payer incorrectly. The calculator requests the two statutory values directly. For Table 2(i), rent covers land, building and land appurtenant to a building. Plant, machinery, equipment, furniture and fittings do not all fit that narrower personal-payer route.
How the TDS calculation works
For a specified payer, deduction normally occurs at the earlier of credit or payment. The month-wise view therefore shows TDS against each selected month. For a person other than a specified person, Table 2(i) moves the deduction event to the earlier of credit or payment for the last month of the tax year or last month of tenancy. The calculator shows the whole estimate in that final selected month.
No surcharge or health and education cess is added to the normal 2% or 10% resident-rent rate. TDS is a tax credit for the landlord, not the landlord's final income-tax liability. The landlord's actual taxable rental income and final tax depend on separate return-computation rules.
Worked example: individual tenant paying ₹60,000
Assume an individual with no business or professional receipts pays one resident landlord ₹60,000 per month from April 2026 through March 2027. The landlord provides a valid PAN.
- The payer is not a specified person.
- Monthly rent exceeds the ₹50,000 threshold.
- Total selected rent is ₹7,20,000.
- TDS at 2% is ₹14,400.
- Estimated net rent after TDS is ₹7,05,600.
- Deduction normally occurs with the March 2027 rent. Form 141 Schedule A is then used.
Worked example: company paying building rent
A company is a specified payer. If it pays a resident landlord ₹60,000 per month for a building throughout the tax year and PAN is valid, the 10% rate produces monthly TDS of ₹6,000 and total TDS of ₹72,000. Deduction occurs at the earlier of credit or payment each month. The ordinary non-government deposit deadline is generally the seventh day after month-end, except March deductions are deposited by 30 April. The payer reports resident non-salary TDS quarterly in Form 140 and issues Form 131.
What changes when PAN is missing or invalid?
Section 397 generally applies the higher of the statutory rate, rates in force or 20% when a valid PAN is not furnished. For Table 2(i) only, the resulting deduction cannot exceed the rent payable for the last month of the tax year or tenancy. The calculator applies that cap after calculating 20% on the selected total rent.
For example, 20% of twelve months at ₹60,000 equals ₹1,44,000. Under Table 2(i), the last-month-rent cap reduces the estimate to ₹60,000. A specified payer under Table 2(ii) does not receive this special cap. An invalid PAN can also prevent the landlord's credit from appearing correctly, so the payer should correct the information before relying on the result.
Forms and due dates after 1 April 2026
| Route | Deposit or statement | TDS certificate | TAN |
|---|---|---|---|
| Table 2(i), individual/HUF not specified | Form 141 Schedule A within 30 days from the end of the deduction month | Form 132 within 15 days from the Form 141 due date | Not required; PAN-based route |
| Table 2(ii), specified payer | Regular deposit plus quarterly Form 140 | Form 131 within 15 days from the Form 140 due date | Required, subject to applicable rules |
Form 141 replaces the familiar Form 26QC for current Table 2(i) transactions, and Form 132 replaces Form 16C. Form 140 is the current resident non-salary quarterly TDS statement that replaces Form 26Q. Its usual due dates are 31 July for April-June, 31 October for July-September, 31 January for October-December, and 31 May after the tax year for January-March.
Joint landlords, mixed assets and special payments
For a property with joint owners, official guidance applies the ₹50,000 monthly threshold separately to each owner's definite and ascertainable share. Enter only the rent attributable to one landlord and repeat the calculation for each owner. Do not divide rent artificially where legal ownership shares are not definite. Joint tenants and landlords also need correct proportional reporting in the current form.
Composite rent needs care. Where separate agreements identify property rent and machinery or equipment rent, a specified payer generally applies 10% to the property component and 2% to the plant or equipment component. If one inseparable arrangement covers both, the substantial element of the agreement matters. Machinery incidental to building rent generally points to 10%. This tool does not guess that legal classification.
A genuinely refundable security deposit is not treated as regular rent by this calculator. A non-refundable amount or deposit adjustable against rent can be advance rent and requires review. Arrears, variable monthly rent, rent-free periods, partial months and multi-year advance rent also fall outside the constant monthly model. Do not count advance rent again when it is later adjusted.
Important limits of this estimate
- It covers one ordinary resident landlord and a constant monthly rent amount.
- It assumes a private, non-government specified payer when displaying ordinary monthly deposit dates.
- It does not apply a nil or lower-deduction certificate, self-declaration, direct-owned REIT exemption or another statutory payee exemption.
- It does not calculate late fee, interest, penalty, correction-statement consequences or landlord income tax.
- It does not decide whether GST is separately stated, whether a payment is rent, or how a mixed agreement should be split.
- For a deduction event on or before 31 March 2026, check the repealed 1961 Act and old forms rather than applying this Tax Year 2026–27 model.
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Frequently asked questions
What is the TDS threshold for rent in FY 2026-27?
For the resident-rent routes covered here, TDS applies when rent attributable to a landlord exceeds ₹50,000 for a month or part of a month. Exactly ₹50,000 does not cross the threshold.
What happened to Sections 194-I and 194-IB?
They belong to the repealed Income-tax Act, 1961. For deduction events from 1 April 2026, the corresponding resident-rent rules are in Section 393(1), Table serial number 2 of the Income-tax Act, 2025.
What is the rent TDS rate for an individual or HUF tenant?
An individual or HUF that is not a specified person normally deducts 2% on qualifying land or building rent paid to a resident when the monthly threshold is crossed.
What rates apply to a company, firm or other specified payer?
The normal rate is 10% for land, building, appurtenant land, furniture or fittings, and 2% for machinery, plant or equipment. The landlord must be resident and the monthly threshold must be crossed.
When does an individual tenant deduct rent TDS?
For Table 2(i), deduction occurs at the earlier of credit or payment for the last month of the tax year or the last month of tenancy. The tax is based on the qualifying rent for the covered period.
What happens if the landlord does not provide a valid PAN?
The higher-rate rule generally makes TDS 20%. For Table 2(i) only, the final deduction cannot exceed rent payable for the last month of the tax year or tenancy.
Is Form 26QC still used after 1 April 2026?
No for a current-law Table 2(i) transaction. Form 141 Schedule A replaces the earlier Form 26QC route, and the related TDS certificate is Form 132 instead of Form 16C.
Is TAN required for TDS on rent?
TAN is not required for the PAN-based Table 2(i) individual/HUF route. A specified payer under Table 2(ii) generally follows regular TAN-based TDS compliance.
How does the threshold work for joint landlords?
Official guidance applies the ₹50,000 monthly threshold separately to each owner's definite and ascertainable share. Calculate the rent attributable to each resident landlord separately.
Does this calculator cover rent paid to a non-resident landlord?
No. Non-resident rent requires a separate chargeability, rates-in-force and treaty analysis, so the calculator returns "Not calculated" rather than a misleading zero-TDS result.
Official sources
- Income Tax Department: Section 393 resident-payment TDS table
- Income Tax Department: Section 397 TAN, PAN and higher-rate rules
- Income Tax Department: Section 402 rent and specified-person definitions
- Income Tax Department: FAQs on TDS on rent, July 2026
- Income Tax Department: Form 141 FAQs
- Income Tax Department: Form 132 certificate FAQs
- Income Tax Department: Form 140 quarterly statement FAQs
- Income-tax Rules, 2026: Rule 215 certificate forms and deadlines
Disclaimer: This calculator provides an educational estimate, not tax, legal, tenancy, accounting or filing advice. Actual responsibility depends on payer classification, payee residence, ownership shares, the agreement, payment and credit dates, PAN validity, asset classification, exemptions and certificates. Verify the result on the official portal or consult a qualified tax professional.