TDS on Rent Calculator (Section 194I)

Tax Deducted at Source on rent is mandatory when you pay house rent exceeding 50000 rupees monthly (600000 rupees annually) to a residential landlord who doesn't have an ITR filing requirement or hasn't provided their PAN. Under Section 194I of the Income Tax Act 1961, a tenant must deduct 10% TDS on rent payments (or 20% if PAN not provided) and deposit it with income tax authorities. This calculator determines your exact TDS obligation on rent payments, essential for both tenants and landlords. For tenants, understanding TDS is important because it represents advance tax paid on the landlord's behalf, which the landlord must reflect in their ITR filings for refund claims or adjustment. Landlords without proper documentation from tenants may receive inadequate TDS, affecting their financial planning. Both parties should maintain clear records and documentation, with the calculator helping verify correct TDS amount at each month-end. Non-compliance with TDS requirements on rent can lead to penalties for both parties under Section 271H.