According to Section 194-IB, if you are paying monthly rent to a resident landlord which is exceeding ₹50,000 then you have to deduct 5% TDS. Instead of complex quarterly returns, you can easily pay and report this tax online using Form 26QC. This challan-cum-statement is a combination of the TDS statement and tax payment challan in the same operation.
If the payment of rent or credit of rent is on or before 31 March 2026, then the tenant will be covered under Income Tax Act, 1961. The tenant must use Form 26QC.
Key Takeaways
-
This form applies to tenants paying more than ₹50,000 a month as rent.
-
As per the Income Tax Act, TDS is usually deducted at 5% of the rent.
-
The Form 26QC must be filed within 30 days from the end of the month in which TDS is deducted.
-
You must download Form 16C and give it to the landlord within 15 days of filing.
What is Form 26QC?
Form 26QC is an online challan-cum-statement filed by tenants who are paying rent more than ₹50,000 per month to report and deposit the TDS deducted from their rent under Section 194-IB of Income Tax Act. It is meant for HUF tenants and individuals. Instead of filing a regular TDS return, the tenant can report the tax payment and make the payment at one place. When you deposit TDS it gets linked to the PAN of the landlord. When the landlord files his return he can claim the credit for the tax paid.
However, as of April 1, 2026, the reporting process has been modified. Form 26QC was applied on the basis of Income tax Act 1961. “Form 141 is now the consolidated challan-cum-statement for such transactions under the Income-tax Act, 2025.
Who is Required to File Form 26QC?
This form is for individual and HUFs who pay rent more than ₹50,000 per month. Form 26QC is for those tenants who are not covered in any other way under Section 194-IB. It is the responsibility of the tenant to deduct the tax and pay it to the government. TDS is usually deducted in the last month of the financial year or on expiry of the tenancy.
When Should Form 26QC be Filed?
Form 26QC has to be filed only once in a financial year. The form has to be submitted within a strict time limit of 30 days from the end of the month in which TDS has been deducted.
|
Event |
Filing Due Date |
|
Deduction at March Year-End |
On or before April 30th |
|
Mid-Year Property Vacancy |
Within 30 days from the end of that final month |
File your return on time to keep your records clean and to protect yourself from daily late fees.
Also Read About: What is Tax Deducted at Source (TDS)?
Information Required Before Filing Form 26QC
Before proceeding to the income tax portal to fill Form 26QC, you need to have the following information ready with you:
-
Valid Aadhaar and PAN details of you and your landlord
-
The name, contact details and postal address of the landlord of the rented premises.
-
The actual length of the tenancy, and the monthly and total annual rent calculated.
-
Tax deduction date and payment transaction number for the tax deduction.
How to File Form 26QC Online?
Steps to file your Form 26QC online are as follows:
-
Navigate to e-Pay Tax: From the Income Tax e-Filing portal, go to e-Pay Tax. Click e-File > e-Pay Tax. Now, click on “New Payment” and choose Form 26QC.
-
Fill in Details: Enter both the tenant and the landlord information.
-
Execute TDS Payment: Fill in the calculated tax amount and choose your preferred online payment method from the available options to pay the tax.
-
Download Acknowledgement: A payment acknowledgement receipt will be automatically generated and available for download by the portal for your ease after form submission.
How to Pay TDS Using Form 26QC
Once you fill in the Form 26QC on the Income Tax portal, you are all set to make the online payment of TDS. The portal has multiple options for digital payments such as net banking, debit card, UPI and NEFT/RTGS. If you are paying in person, you can also generate an electronic CRN challan for cash payments.
After successful payment, a confirmation receipt with Challan Reference Number is generated which should be downloaded and kept for future reference.
How to Download Form 16C After Filing Form 26QC
The steps on how to download Form 16C are as follows:
-
Step 1: Visit TRACES portal. Register as a taxpayer with your PAN details and acknowledgement number of Form 26QC.
-
Step 2: Download Form 16B/16C/16D/16E from the Downloads section. Select the year of your assessment and answer the questions.
-
Step 3: When the request has been submitted you will be given a Request Number. When it changes to available, go to the folder “Requested Downloads” and download the ZIP file.
-
Step 4: The password to open the ZIP file will be your date of birth in the format DDMMYY. You can claim the TDS credit by e-mailing or printing the PDF to your landlord.
Consequences of Late Filing or Non-Filing of Form 26QC
Not meeting the strict submission deadline can lead to penalties and compliance issues.
-
There is a late fee of ₹200 per day under section 234E.
-
Interest on late deductions is 1% per month and interest on late payments after deductions is 1.15% per month.
-
In some cases, penalty under Section 271H can be levied by the assessing officer.
-
The landlord’s TDS credit may also be delayed if the certificate is not issued on time..
To avoid unnecessary penalties, you should submit the Form 26QC in a timely manner.
Also Read About: Form 26QB
Form 26QC vs Form 26Q vs Form 26QB
|
Feature |
Form 26QC |
Form 26Q |
Form 26QB |
|
Purpose |
TDS on rent |
Quarterly TDS return for non-salary payments |
TDS on purchase of property |
|
Applicable Section |
194-IB |
Various TDS provisions |
194-IA |
|
Deductor |
Individual/HUF tenant |
Businesses and other deductors |
Property buyer |
|
Threshold |
Monthly rent above ₹50,000 |
Depends on payment type |
Property value above ₹50 lakh |
|
Filing Frequency |
Once per tenancy or financial year |
Quarterly |
One-time per property purchase |
Also Read About: What is Form 26Q?
Conclusion
So to conclude, if the tenant is an individual or HUF and the rent is more than ₹ 50,000 then Form 26QC is applicable. This form assists them in staying compliant and avoiding unnecessary penalties. For the rental agreement to be legal and hassle-free, the tenant has to deduct the tax timely, file the challan correctly and give the Form 16C to the landlord.
Looking to invest? Open a Demat Account with Angel One and start trading seamlessly.
