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

  • How Can I Check My Tax Refund Status? Income Tax Refund Delayed

    I filed my Indian income tax return for FY 2025-26 (AY 2026-27) and was expecting a refund, but I haven't received it yet. I’m an NRI living in the US...

    • 3 Reply
    • 24 Views

  • Which Tax Regime Is Better for NRIs?

    I’m an NRI living in the US and preparing my Indian income tax return for FY 2025-26 / AY 2026-27. I’m confused about whether I should choose the old tax...

    • 3 Reply
    • 22 Views

  • How Can I Respond to an Income Tax Notice Online in India?

    I received an income tax notice on my e-Filing account, and I'm trying to understand how I should respond to it. I'm an NRI living in the US and filed...

    • 3 Reply
    • 22 Views

  • Can NRIs Claim Tax Deductions Under Section 80C in India?

    I’m an NRI living in the US and preparing my Indian income tax return for FY 2025-26. I have some income in India from bank interest and a property, and...

    • 3 Reply
    • 21 Views

  • IRS Opens 2026 Tax Filing Season: What Taxpayers Should Know

    I saw that the IRS opened the 2026 tax filing season on January 26, 2026, and I'm trying to understand what this means for people who need to file their...

    • 3 Reply
    • 50 Views

  • What Is Form 10BD Under the Income Tax Act and Who Must File It?

    10BD under the Income Tax Act. I understand that it relates to reporting donations received by certain trusts, institutions and NGOs, but I'm not completely clear about who is actually...

    • 3 Reply
    • 45 Views

  • What Is Form 138 Under the Income-tax Act, 2025 and Who Must File It?

    I came across Form 138 under the Income-tax Act, 2025 while looking into the new income-tax forms applicable from Tax Year 2026-27. From what I understand, Form 138 is connected...

    • 3 Reply
    • 46 Views

  • How Long Does It Take to Get an Income Tax Refund?

    I filed my Indian income tax return recently and the return has been successfully submitted, but I’m still waiting for my income tax refund. I’m an NRI living in the...

    • 3 Reply
    • 44 Views

  • Income Tax Department Customer Care Number – Which Helpline Should I Call?

    I'm currently living in the UK and trying to file my Indian Income Tax Return through the Income Tax e-Filing portal. While submitting my return, I ran into a technical...

    • 3 Reply
    • 53 Views

  • Income Tax Department Deadline Extensions – Should I Wait or File My ITR Now?

    I'm an NRI living in the UAE and need to file my Indian Income Tax Return for this financial year. I've gathered most of my documents, but I'm still waiting...

    • 3 Reply
    • 58 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