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. 

Join The Discussion

Share Your Thoughts and Connect with Others.

Releated Topics

  • TDS Deducted Twice - What Should I Do? How to Claim the Excess TDS?

    I noticed that TDS appears to have been deducted twice on the same income, and I am not sure whether this is an actual duplicate deduction or just a reporting...

    • 3 Reply
    • 64 Views

  • How Can I Apply for a Lower TDS Certificate in India?

    I am an NRI and I am planning to sell a property in India. I was told that the buyer may have to deduct a significant amount of TDS from...

    • 3 Reply
    • 62 Views

  • Why Was So Much TDS Deducted from My Property Sale?

    I’m an Indian citizen living in Dubai and became a non-resident for Indian tax purposes several years ago. I recently sold an apartment I owned in Pune, and I was...

    • 3 Reply
    • 53 Views

  • How Long Does a TDS Refund Take in India?

    I am an NRI and had a fairly large amount of TDS deducted from income in India during the financial year. After calculating my actual tax liability, it looks like...

    • 3 Reply
    • 59 Views

  • Can NRIs Get Full TDS Refunds?

    I am an NRI and had TDS deducted from my income in India during the financial year. The amount deducted is quite high compared with the tax I expect to...

    • 3 Reply
    • 61 Views

  • What Is the Difference Between RNOR and NRI Tax Status in India?

    I moved abroad several years ago and have been filing my Indian tax returns as a non-resident. This year, however, I spent more time in India because of family and...

    • 3 Reply
    • 52 Views

  • Can I Avoid Paying Tax Twice on Rental Income?

    I am an NRI and receive rental income from a property in India. I currently live and pay taxes in another country, and I am confused about whether I will...

    • 3 Reply
    • 58 Views

  • Is a Tax Residency Certificate Mandatory for DTAA Benefits in India?

    I’m an NRI living and working outside India, and I receive some income from India. I’m trying to understand how the DTAA (Double Taxation Avoidance Agreement) works because I may...

    • 3 Reply
    • 60 Views

  • How Do I Convert My Savings Account into an NRO Account?

    I moved from India to the UK for work last year and have been using the same Indian savings account that I had before moving abroad. I recently found out...

    • 3 Reply
    • 64 Views

  • How Can I Avoid Penalties for Late Tax Filing?

    I missed the income-tax return filing deadline this year and only realised it after checking my tax records. I am an NRI and have some income in India, including bank...

    • 3 Reply
    • 65 Views
Popular Categories
confused img
Can’t find an answer?

Let Savetaxs guide you to the perfect solution for all your queries.

comunity img

Join Our Facebook Community of
NRIs/OCIs Like You

Join Community
Join Community