Insist on obtaining Form 16C from the tenant which has been downloaded from TRACES website only.In my quest to "automate all the things," I have been on a journey to manage my Mac laptop as the code it inherently is. Verify deposit of taxes deducted by the Tenant in your Form 26AS Annual Tax Statement. Provide your PAN to the Tenant for furnishing information regarding TDS to the Income Tax Department. Points to be remembered by the Landlord of the Property: If the Landlord / Lessor/ Payee is a non-resident, liability to deduct TDS arises under section 195 of the Income-tax Act, 1961. Download and furnish TDS certificate in Form 16C from TRACES and issue to the Landlord / Lessor/ Payee within 15 days from the due date of furnishing of the challan-cum-statement in Form 26QC. For the purpose of error rectification you have to contact Income Tax Department. Do not commit any error in quoting the PAN or other details in the online Form. PAN of the Landlord as well as Tenant should be mandatorily furnished in the online Form for furnishing information regarding the rent. 
Collect the Permanent Account Number (PAN) of the Landlord and verify the same with the Original PAN card. 
Deduct tax 5% or 3.75% from the rent payment made to the Landlord (depending upon the Date of Payment/Credit to the Landlord). All individuals or HUFs (except those liable to audit under clause a and b of section 44AB) paying monthly rent to a resident in excess of ₹ 50,000 are liable to deduct TDS under section 194-IB. Points to be remembered by the Tenant of the Property: 
Tax so deducted should be deposited to the Government Account through any of the authorized bank branches.ĭetailed procedure, list of Bank branches authorized to accept TDS and Frequently Asked Questions (FAQs) are available on this website for reference. Section 194-IB of the Income Tax Act, 1961 states that for all the transactions with effect from June 1, 2017, tax 5% or 3.75% should be deducted (depending upon the Date of Payment/Credit to the Landlord) by the Tenant/ Lessee/ Payer of the property at the time of making payment of rent (to Landlord / Lessor/ Payee). As per Finance Act, 2017, “TDS on Rent” under section 194-IB is liable to be deducted by Individuals or HUFs (Hindu Undivided Family) (other than an individual or a HUF, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid) responsible for paying to a resident monthly rent exceeding ₹ 50,000.
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