Form 141 under the Income Tax Act, 2025 (earlier Form 26QC under the Income Tax Act, 1961) is a challan-cum-return form used to report and pay TDS on rent under Section 194-IB.
1. Background: Rent Paid by Individuals / HUF
It is common for individuals and HUFs to pay rent for residential or office purposes. In Budget 2017, the government introduced Section 194-IB (effective from 1st June 2017) to cover TDS on rent payments for such cases.
If your rent payment falls under this section, you are required to deduct and deposit TDS using Form 141 (earlier Form 26QC). Check the applicability and filing process to ensure proper compliance.
2. What is Rent?
Rent means any payment made under an agreement such as a lease, sub-lease, or tenancy for using land, a building, or both, no matter what the payment is called.
3. What is Section 194-IB?
3.1 Applicability
This section applies to individuals or HUFs (who are not required to get their accounts audited) when they pay rent.
3.2 Threshold Limit
TDS must be deducted if the monthly rent exceeds ₹50,000.
3.3 TDS Rate
The TDS rate on rent is 5%.
3.4 Time of Deduction
TDS should be deducted at the earlier of:
- When rent for the last month of the year or tenancy is credited, or
- When the rent is actually paid (cash or bank)
3.5 TAN Requirement
You do not need a TAN to deduct TDS under this section.
3.6 Deductee (Landlord) Details
- PAN of the landlord is mandatory
- If PAN is not available, TDS must be deducted at 20% (limited to last month’s rent)
Note: If a property has multiple owners, you must file separate Form 141 (earlier Form 26QC) for each owner based on their share.
3.7 TDS Return
The deducted TDS must be deposited with the government using Form 141 (challan-cum-return).
4. What is Form 141 (Earlier Form 26QC) & How to File?
Form 141 is a challan-cum-return form used to report and pay TDS on rent under Section 194-IB.
- It must be filed within 30 days from the end of the month in which TDS is deducted.
Example:
If rent is paid in April, the form must be filed by 30th May.
You can file the form online on the Income Tax portal.
Details Required for Filing:
- PAN and name of tenant
- PAN and name of landlord
- Address details of both
- Mobile number and email ID
- Address of rented property
- Period of tenancy
- Total rent amount
- Last month’s rent
- Date of payment and TDS deduction
- Type of property (land/building)
- Bank details for payment
Tip: Keep all details ready before starting, as the form should be completed within 30 minutes.
5. What is Form 132 (Earlier Form 16C) & Why is it Important?
Form 132 is a TDS certificate issued by the tenant to the landlord after deducting and depositing TDS on rent.
It includes:
- Name and address of tenant and landlord
- Total rent paid
- TDS deducted
- Payment and challan details
- Certificate number
Deadline:
The tenant must issue this certificate to the landlord within 15 days of filing Form 141.
FAQs on TDS on Rent (Section 194-IB) & Form 141
1. Who is required to deduct TDS under Section 194-IB?
Individuals or HUFs (not liable for tax audit) paying rent above ₹50,000 per month must deduct TDS.
2. When is TDS on rent applicable?
TDS is applicable when monthly rent exceeds ₹50,000, even if paid for residential or commercial purposes.
3. What is the TDS rate under Section 194-IB?
The applicable TDS rate is 5% on the rent amount.
4. Is TAN required for deducting TDS on rent?
No, TAN is not required for TDS deduction under Section 194-IB.
5. What happens if the landlord does not provide PAN?
TDS must be deducted at 20%, but it cannot exceed the rent of the last month.
6. What is Form 141 (Form 26QC)?
It is a challan-cum-return form used to report and pay TDS on rent under Section 194-IB.
7. What is the due date for filing Form 141 (26QC)?
It must be filed within 30 days from the end of the month in which TDS is deducted.
8. How can Form 141 (26QC) be filed?
It can be filed online through the Income Tax e-filing portal.
9. What is Form 132 (Form 16C)?
It is a TDS certificate issued by the tenant to the landlord after depositing TDS.
10. When should Form 132 (16C) be issued?
It must be issued within 15 days from the date of filing Form 141.
11. Is TDS deducted every month on rent?
No, TDS is usually deducted once at the end of the financial year or tenancy.
12. What if there are multiple landlords?
Separate Form 141 (26QC) must be filed for each landlord based on their share.
13. Can TDS be deducted on advance rent?
Yes, TDS is applicable on advance rent if it exceeds the threshold limit.
14. What are the penalties for not filing Form 141?
Late filing may attract interest, late fees, and penalties under the Income Tax Act.
15. Can I revise Form 141 after submission?
Yes, correction can be made through the TRACES portal if any error is found.
