What are Sections 194-ib and 194-ic Under Income Tax Act?

GT Posted by: Geo Tom
• 08 October, 2025
4 Reply

Section 194-IB of the Income Tax Act deals with the tax to be deducted at source for the rent payment at 2%, which is more than 50,000 INR in a month, to your landlord.

Section 194-IC is introduced by the 'Joint Development Agreement', which is an agreement between the developer and owner of the assets. Under this section, your TDS will be deducted at a 10% rate.

Tags : section 194 ib 194 ic income tax

  • Aarav Sharma 16 October, 2025

    What is the online TDS payment procedure under section 194-IB? 

    • S
      Savetaxs 16 October, 2025

      Given below are the steps for the online TDS payment procedure. 

      • Go to the official government e-portal. 
      • Choose "challan number/ ITNS 281" under the TDS/TCS section. 
      • Enter all the required details with PAN, TDS, and rent amount. 
      • Then you need to pay the required fees. 
      • Save the receipt for future reference. 

       

  • Aniket Bansal 13 October, 2025

    The TDS rate under section 194-IB is 5% which helps individuals and HUFs to keep fairness in the tax collection. If the taxpayer fails to provide the PAN, then he or she will be liable for the TDS deduction at a 20% rate.

  • Praveen Kumar 10 October, 2025

    Here are the specifications of both sections 194-IB and 194-IC, given below: 

    Section 194-IB 

    • 2% TDS rent of the amount is exceeding 50,000 per month. 
    • Rent is paid by individuals and HUFs. 
    • It applies to the taxpayers who do not undergo under tax audit. 
    • TDS should be deposited with the government
    • Ensures high-value rental transactions. 
    • Rent can be credited through cash, cheque or etc. 

    Section 194-IC 

    • Payments made under the Joint Development Agreement will be deducted at 10%. 
    • The developer should deduct the TDS with consideration paid to the landowner. 
    • Provide transparency in Income reporting. 

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