How TDS on Rent Actually Works
TDS on rent is the tax a tenant must deduct from the rent before paying the landlord, and deposit with the government on the landlord\’s behalf. It sounds simple, but it is one of the most misunderstood tax obligations in India, because the rules split into two completely different sections depending on who is paying the rent, with a third section for non-resident landlords. Applying the wrong section, threshold, rate or timing is extremely common, and it leads to under-deduction, penalties, and notices. The first thing to get right is which section applies to you.
If you are an ordinary individual or a Hindu Undivided Family paying rent, and your books are not subject to tax audit, you fall under Section 194-IB. This is the section that applies to most salaried tenants renting a home or a shop. Under it, you must deduct TDS only if your monthly rent to a single landlord exceeds 50,000 rupees. Crucially, this threshold is monthly, so a rent of 49,999 rupees a month attracts no TDS at all, while 50,001 rupees triggers the obligation for that financial year. The rate is a flat 2%, reduced from 5% with effect from 1 October 2024, a change many people are still unaware of.
If instead the tenant is a business, company, partnership, trust, or an individual whose accounts are audited, then Section 194-I applies. Here the threshold is annual, not monthly: TDS is required only if the total rent paid to a single landlord in the financial year exceeds 6,00,000 rupees, a limit raised from the earlier 2,40,000. The rate depends on what is rented: 10% for land, buildings, or furniture, and a lower 2% for plant and machinery. Unlike individuals, businesses must obtain a TAN, deduct the TDS as they pay each month, and file quarterly returns.
The third case is when the landlord is a non-resident Indian. Here neither 194-I nor 194-IB applies; instead Section 195 governs, and it is far stricter. There is no threshold at all, so TDS applies from the first rupee of rent, and the rate is much higher, around 30% plus cess, subject to relief under the tax treaty with the landlord\’s country. The tenant must obtain a TAN and file Form 27Q. Paying an NRI landlord as though the ordinary 2% individual rate applied is a serious and costly error. This calculator asks you the few questions needed to route you to the correct section and then computes the exact TDS, rate, timing and form for your situation.
The Details That Trip People Up
Section 194-IB, the one most tenants deal with, has three features that catch people out repeatedly. First, the timing: unlike a business, you do not deduct TDS every month. You deduct it once a year, in one shot, from the rent of the last month of the financial year, March, or from the last month of your tenancy if you move out earlier. The TDS is calculated on the whole year\’s rent at 2%, but taken in that single final deduction. So a tenant paying 60,000 a month for a year deducts nothing for eleven months, then deducts 2% of the full 7,20,000, which is 14,400, from the final month\’s rent.
Second, you do not need a TAN, the tax deduction account number that businesses must have; you simply file Form 26QC online using your PAN and the landlord\’s PAN, and issue the landlord a Form 16C certificate as proof. Third, the rate is 2%, not the old 5%, since October 2024.
Getting the PAN right matters enormously. If your landlord does not provide their PAN, the TDS rate jumps to 20% under Section 206AA, ten times the normal individual rate, though for Section 194-IB this higher deduction is capped at the rent of the last month. So always collect your landlord\’s PAN before deducting; the difference between 2% and 20% is large, and the landlord will want the credit for the tax in their own return, which requires their PAN. This calculator lets you model the no-PAN case so you can see the impact.
Another frequent confusion is GST. If your landlord is registered for GST and charges it on the rent, you deduct TDS only on the rent amount, not on the GST component. So if the rent is one lakh plus 18% GST, making 1,18,000, the TDS is calculated on the one lakh, not the 1,18,000, as clarified by a CBDT circular. Always confirm in writing whether the quoted rent is inclusive or exclusive of GST before you deduct, or you risk under-deducting. This calculator lets you indicate whether the rent includes GST and strips it out of the TDS base accordingly, while still judging the threshold on the rent actually paid.
Joint ownership adds a subtlety. If the property is owned jointly, say by a husband and wife, each owner is a separate payee for TDS. Under Section 194-I, the 6,00,000 annual threshold is judged per owner, so splitting rent between two owners can keep each below the limit. But under Section 194-IB, the 50,000 monthly threshold is judged on the total monthly rent you pay, not the per-owner share, so you cannot escape it by pointing to individual shares. Finally, a landlord who expects their overall tax to be lower than the TDS can apply to the assessing officer for a lower or nil deduction certificate under Section 197, after which you deduct at the reduced rate specified. These nuances are why understanding your exact situation matters, and why this calculator asks the questions it does.
How the Calculation Works
The tool determines your TDS in four steps.
Step one: route to the right section
It asks who is paying, an individual or a business, and whether the landlord is resident or an NRI. From these it selects Section 194-IB for individuals, Section 194-I for businesses, or Section 195 for NRI landlords, each of which has its own threshold, rate and rules.
Step two: strip GST and check the threshold
If you indicate the rent includes GST, it removes the GST to find the taxable rent base, since TDS is on the rent alone. It then checks the applicable threshold: 50,000 per month for individuals, 6,00,000 per year for businesses, or none for NRI landlords, to decide whether TDS applies at all.
Step three: apply the correct rate
It applies the right rate: a flat 2% for individuals, 10% or 2% for businesses depending on the asset, or about 30% plus cess for NRI landlords. If the landlord has not provided a PAN, it applies the higher 20% rate, with the special one-month cap for Section 194-IB.
Step four: the amount, timing and form
Finally it computes the TDS, both per month and for the full year, and tells you when to deduct it, once a year for individuals or monthly for businesses, and which form to file, Form 26QC, 26Q or 27Q, so you know not just the amount but the whole compliance step.
Three Worked Examples From Real Tenants
Here are three tenants getting their TDS right.
Rohan, a salaried tenant in Mumbai
Rohan, in Mumbai, rents a flat for 60,000 rupees a month and was unsure whether he needed to deduct TDS. On the tool, entering that he is an individual paying a resident landlord, he saw that Section 194-IB applies because his rent exceeds 50,000 a month, and the TDS is 2% of his annual rent of 7,20,000, which is 14,400. The tool made three things clear that he had wrong: the rate is 2%, not the 5% his colleague had mentioned; he does not deduct it monthly but once a year, from March\’s rent; and he does not need a TAN, just Form 26QC filed with his and his landlord\’s PAN. Rohan set a reminder for March, collected his landlord\’s PAN, and avoided both the under-deduction and the steep late-filing fee he might otherwise have faced.
Anjali, whose rent is just below the threshold in Bengaluru
Anjali, in Bengaluru, pays 48,000 rupees a month and had been worried she was breaking the law by not deducting TDS. On the tool, she saw immediately that as an individual paying a resident landlord below the 50,000 monthly threshold, she has no TDS obligation at all. The tool reassured her that below 50,000 a month, Section 194-IB simply does not apply, so she need do nothing. It also flagged that if her rent were to rise above 50,000 at any point in the year, the obligation would kick in for that financial year, so she made a note to revisit it at her next renewal. Anjali stopped worrying, correctly, having confirmed her position rather than guessing.
A startup renting an office in Pune
A small company in Pune rents office space for 80,000 rupees a month. On the tool, entering that the tenant is a business paying a resident landlord for a building, it saw that Section 194-I applies because the annual rent of 9,60,000 exceeds the 6,00,000 threshold, and the rate is 10% for a building, so the TDS is 8,000 a month, totalling 96,000 for the year. The tool reminded the founder that a business must deduct monthly, obtain a TAN, and file quarterly returns in Form 26Q, quite different from the individual rules, and that the company must deduct even on rent it had been paying from a personal account before the company\’s bank account opened. The startup set up its TAN and monthly deduction process correctly, avoiding the retroactive compliance scramble many young companies face.
Frequently Asked Questions on TDS on Rent
Who has to deduct TDS on rent?
Whether you must deduct TDS on rent, and under which section, depends on who you are and how much rent you pay. If you are an individual or a Hindu Undivided Family whose accounts are not subject to tax audit, which covers most salaried tenants, you fall under Section 194-IB, and you must deduct TDS only if your monthly rent to a single landlord exceeds 50,000 rupees. If you are a business, company, partnership, trust, or an individual or HUF whose accounts are audited, you fall under Section 194-I, and you must deduct TDS if the total rent to a single landlord in the financial year exceeds 6,00,000 rupees. In both cases, the obligation is on the tenant, the person paying the rent, not the landlord, to deduct the tax and deposit it with the government. Separately, if your landlord is a non-resident Indian, Section 195 applies regardless of the amount, with no threshold at all. So the short answer is: individuals paying over 50,000 a month, businesses paying over 6 lakh a year, and anyone paying rent to an NRI, must deduct TDS. If you are an individual paying a resident landlord 50,000 a month or less, you have no TDS obligation. This calculator asks you the few questions needed to determine precisely whether you must deduct, under which section, and how much.
What is the TDS rate on rent for individuals?
For individuals and HUFs not subject to tax audit, under Section 194-IB, the TDS rate on rent is a flat 2%. This is an important point because the rate was reduced from 5% to 2% with effect from 1 October 2024, and many tenants, and even some advisers, are still unaware of the change and continue to apply the old 5%, resulting in over-deduction. So for any rent deducted from October 2024 onwards, the correct rate for an individual tenant is 2% of the total rent paid for the period. The 2% is applied to the whole year\’s rent, but deducted in a single go from the last month\’s rent, typically March or the final month of tenancy. There is one exception: if the landlord does not provide their PAN, the rate rises to 20% under Section 206AA, though for Section 194-IB this higher amount is capped at one month\’s rent. For businesses under Section 194-I, the rate is different, 10% for buildings and 2% for plant and machinery, and for NRI landlords under Section 195 it is around 30% plus cess. So the 2% figure is specifically for individual and HUF tenants paying resident landlords. This calculator applies the current 2% rate for individuals and the correct rate for every other case, so you never deduct at the wrong rate.
When is TDS on rent not required?
TDS on rent is not required in several situations. Most importantly, if you are an individual or HUF not subject to tax audit and your monthly rent to a resident landlord is 50,000 rupees or less, no TDS is required at all under Section 194-IB, since the threshold is that the monthly rent must exceed 50,000. So a tenant paying 50,000 or 48,000 a month has no obligation, while one paying 55,000 does. For businesses under Section 194-I, no TDS is required if the total annual rent to a single landlord does not exceed 6,00,000 rupees. Below these thresholds, you simply pay the full rent to the landlord and do nothing further, and the landlord accounts for the income in their own tax return. Note, however, that the threshold is judged over the financial year and per landlord, so if your rent rises above the limit partway through the year, the obligation can arise for that year, and if you pay multiple landlords, each is assessed separately, with the caveat that for individuals the 50,000 test is on the total monthly rent for the property. The one situation where TDS always applies regardless of amount is when the landlord is an NRI, under Section 195, which has no threshold. This calculator checks the relevant threshold for your case and tells you clearly whether any TDS is due.
How do I deposit TDS on rent as an individual?
As an individual or HUF tenant under Section 194-IB, depositing TDS on rent is designed to be simple, without the need for a TAN. You use Form 26QC, which is a combined challan-cum-statement, filed online through the income tax portal or the TIN-NSDL website under the option for TDS on rent of property. You enter the property details, your PAN and your landlord\’s PAN, the rent amount and the TDS deducted, and pay the TDS online or at an authorised bank. This must be done within 30 days from the end of the month in which you deducted the TDS, which for most tenants is the end of March or the month they vacate. After filing Form 26QC and paying, you must also issue your landlord a Form 16C, which is the TDS certificate proving you deposited the tax on their behalf, within 15 days of filing. The landlord uses this to claim credit for the tax in their own return. The whole process is meant to be manageable for an ordinary tenant without professional help, though many use a chartered accountant for peace of mind. The key is to not miss the 30-day deadline, because the late fee is 200 rupees a day and can quickly add up to a significant amount. This calculator tells you the TDS to deposit and the form to use, so you know exactly what the compliance step involves.
What happens if the landlord does not give a PAN?
If your landlord does not provide their PAN, the consequences are significant. Under Section 206AA of the Income Tax Act, TDS must then be deducted at the higher of the normal rate or 20%, which for an individual tenant means 20% instead of the usual 2%, ten times as much. For Section 194-IB specifically, there is a relief: this higher 20% deduction is capped at the amount of the last month\’s rent, so you would not deduct more than one month\’s rent as TDS even at 20%. Nonetheless, deducting 20% is far more than 2%, and it creates problems for both sides. For the landlord, without a PAN they cannot claim credit for the TDS in their tax return, effectively losing that money or having to reclaim it through a cumbersome process. For you as the tenant, deducting at the wrong, lower rate because you did not insist on the PAN can leave you liable for the shortfall plus interest. So the practical advice is always to obtain your landlord\’s PAN in writing before you deduct any TDS, ideally at the start of the tenancy. A landlord who is receiving legitimate rental income has every reason to provide their PAN, since they need it to claim the tax credit. If a landlord refuses to give a PAN, that itself may be a warning sign. This calculator lets you model the no-PAN scenario so you can see the 20% impact and understand why the PAN matters so much.
Is TDS deducted on the GST portion of rent?
No, TDS on rent is not deducted on the GST component; it is calculated only on the rent amount itself. This is clarified by a CBDT circular, and it is a point that causes frequent confusion. If your landlord is registered for GST and charges GST on the rent, your rent invoice might show, for example, one lakh rupees of rent plus 18% GST, making a total of 1,18,000 rupees. In this case, you deduct TDS on the one lakh of rent, not on the 1,18,000 gross figure. Deducting on the GST-inclusive amount would mean over-deducting, taking TDS on the tax itself, which is not required. The reason is that GST is a tax collected by the landlord to pass on to the government, not income in the landlord\’s hands, so it is excluded from the base for income tax TDS. The practical step is to confirm, in writing, whether the rent figure quoted to you is inclusive or exclusive of GST before you deduct, because if you assume wrongly you could either over-deduct or under-deduct. Where the rent is quoted inclusive of GST, you should strip out the GST to find the rent base and apply the TDS rate to that. This calculator lets you indicate whether the rent includes GST and, if so, removes it from the TDS base while still checking the threshold against the actual rent paid, so your TDS is computed correctly on the rent alone.
How is TDS on rent different for businesses and individuals?
The differences between the business regime, Section 194-I, and the individual regime, Section 194-IB, are substantial, which is why identifying which applies to you is the first step. On the threshold: for businesses it is annual, TDS applies if total rent to a landlord exceeds 6,00,000 rupees in the year, while for individuals it is monthly, TDS applies if the monthly rent exceeds 50,000 rupees. On the rate: businesses deduct 10% for land, building or furniture and 2% for plant and machinery, while individuals deduct a flat 2% regardless of asset type. On the timing: businesses deduct TDS each month as they pay the rent, while individuals deduct only once a year, in the last month. On the administration: businesses must obtain a TAN, a tax deduction account number, and file quarterly TDS returns in Form 26Q, whereas individuals need no TAN and simply file Form 26QC once, using their PAN. These differences reflect the intent behind Section 194-IB, introduced in 2017 to bring high-value residential rent into the tax net without burdening ordinary tenants with the full compliance apparatus that businesses handle. So a company renting an office and an individual renting a flat, even at the same rent, face quite different obligations. This calculator asks whether you are an individual or a business and applies the entire correct regime, threshold, rate, timing and form, for your case.
When do I deduct TDS if I am an individual tenant?
As an individual or HUF tenant under Section 194-IB, you deduct the TDS only once a year, not every month, which is one of the most commonly misunderstood aspects of this section. Specifically, you deduct the whole year\’s TDS from the rent of the last month of the financial year, which is March, or from the rent of the last month of your tenancy if you vacate the property before the year ends, whichever comes first. So if you rent a flat for 60,000 a month for the full year, you pay the full 60,000 for eleven months without any deduction, and then in March you deduct the entire year\’s TDS, which is 2% of the total 7,20,000, or 14,400, from that month\’s payment, paying your landlord the balance. If you were to vacate in, say, November, you would deduct the TDS for April to November from the November rent. This once-a-year timing is quite different from businesses, which deduct monthly. The logic is to keep compliance light for individual tenants, requiring only a single deduction and a single Form 26QC filing rather than monthly work. The important thing is not to forget the March deduction, since the tax still has to be deducted and deposited even though you did nothing for the earlier months. This calculator shows you the total annual TDS to deduct in that single final deduction, so you know exactly how much to hold back from the last month\’s rent.
What is Form 26QC and Form 16C?
Form 26QC and Form 16C are the two documents at the heart of Section 194-IB compliance for individual tenants. Form 26QC is a combined challan-cum-statement that you, the tenant, file online to both report and pay the TDS you deducted on rent. It captures the details of the transaction, your PAN and the landlord\’s PAN, the property, the rent, the period, and the TDS amount, and you pay the tax at the same time. It must be filed within 30 days from the end of the month in which you deducted the TDS. The advantage of Form 26QC is that it does not require you to have a TAN; you use your PAN, which keeps the process simple for ordinary tenants. Form 16C is the TDS certificate that you, the tenant, must then issue to your landlord after filing Form 26QC, within 15 days of the filing. It serves as proof to the landlord that you have deducted and deposited the tax on their behalf, and the landlord uses it to claim credit for that tax when filing their own income tax return, so that they are not taxed twice on the same income. In effect, Form 26QC is how you tell the government about the TDS and pay it, and Form 16C is how you tell the landlord. Both are straightforward but must be done on time to avoid the daily late fee. This calculator tells you the TDS amount that would go into these forms.
Does TDS on rent apply to commercial property?
Yes, TDS on rent applies to both residential and commercial property; the section and rate depend on who is paying, not on the type of property. Under Section 194-IB, an individual or HUF not subject to tax audit who pays monthly rent exceeding 50,000 rupees must deduct 2% TDS whether the property is a home, a shop, an office, or any other premises, so a professional renting a clinic or an individual renting a shop for their small business, if not audited, follows the same 194-IB rules as a residential tenant. Under Section 194-I, a business paying rent above 6,00,000 a year deducts TDS on any property it rents, again residential or commercial, at 10% for the building. The distinction that matters is the tenant\’s status, individual versus business, and for businesses the asset type, building versus plant and machinery, not whether the property is residential or commercial. There is one nuance worth noting: rent for plant, machinery or equipment attracts the lower 2% rate under Section 194-I, so if a business lease bundles a building with equipment, the rates may differ for the two components, and the lease schedule should be reviewed. But for straightforward property rent, residential and commercial are treated alike within each section. This calculator applies the correct section and rate based on your tenant type and, for businesses, the asset type, covering both residential and commercial rent.
What if I pay rent to an NRI landlord?
If your landlord is a non-resident Indian, the rules change completely, and this is a situation where mistakes are both common and costly. Neither Section 194-I nor Section 194-IB applies to rent paid to an NRI; instead, Section 195 governs. Section 195 is much stricter: there is no threshold at all, so TDS applies from the very first rupee of rent regardless of how small, and the rate is far higher, typically around 30% plus applicable surcharge and cess, though this may be reduced under the Double Taxation Avoidance Agreement between India and the landlord\’s country of residence. Additionally, unlike the simple Form 26QC route for resident individual landlords, paying an NRI landlord requires you to obtain a TAN and file Form 27Q, which is more involved. Because the rate is so high and the compliance more complex, and because getting it wrong can leave you liable for the shortfall plus interest and penalties, it is strongly advisable to consult a chartered accountant if your landlord is an NRI. A very common and serious error is for a tenant to apply the ordinary 2% individual rate to an NRI landlord, drastically under-deducting; the tenant then bears the consequences. It is also important to actually check your landlord\’s residential status rather than assume, since a landlord living abroad is likely an NRI even if they are an Indian citizen. This calculator routes NRI cases to Section 195 and shows the higher rate, but for an NRI landlord you should treat the result as indicative and get professional help.
What are the penalties for not deducting TDS on rent?
The penalties for failing to deduct or deposit TDS on rent can be substantial, which is why compliance matters even for individual tenants. If you fail to deduct the TDS when required, you can be treated as an assessee in default and be liable for the tax itself plus interest, and there is a penalty and even the risk of prosecution in serious cases. If you deduct the TDS but deposit it late, interest accrues at 1.5% per month or part month from the date of deduction to the date of deposit; if you fail to deduct on time in the first place, interest is 1% per month. For Section 194-IB specifically, if you file Form 26QC late, there is a late fee of 200 rupees per day under Section 234E for every day of delay, and crucially, this fee can accumulate up to the amount of the TDS itself, meaning a modest TDS and a long delay can result in a late fee that equals the entire tax. There can also be a separate penalty for failure to furnish the statement. These penalties are disproportionately harsh relative to the small TDS amounts individual tenants often deal with, so the practical lesson is to file Form 26QC on time even if you are unsure of some details, and to deduct and deposit promptly. This calculator gives you the TDS amount and the filing deadline context so you can meet your obligations and avoid these easily-incurred penalties.
Is the rent threshold judged per landlord or per property?
The threshold is judged per landlord, per financial year, which has practical implications especially for jointly owned properties. Under Section 194-I for businesses, the 6,00,000 annual threshold is assessed for each landlord separately, so if a property is jointly owned by two people, say a couple, and the rent is split between them, each co-owner is a separate payee and the 6,00,000 limit applies to each one\’s share. This means a business could potentially pay up to 6,00,000 to each owner without crossing the threshold, though the arrangement must be genuine. Under Section 194-IB for individuals, however, the position is different: the 50,000 monthly threshold is judged on the total monthly rent paid for the property, not on the per-owner share, so you cannot avoid the obligation by pointing to the individual shares of joint owners. So if you as an individual pay 60,000 a month for a flat owned jointly by two people, the 194-IB obligation still applies because the total exceeds 50,000, even though each owner\’s share is only 30,000. This asymmetry between the two sections is a subtle but important point that catches people out. It is also worth noting that the threshold is per financial year, so if you change landlords or your rent changes during the year, each situation is assessed on its own. This calculator applies the threshold appropriate to your section; for complex joint-ownership situations, especially under Section 194-I, it is worth confirming the arrangement with a chartered accountant.
Can the landlord get a lower TDS rate?
Yes, a landlord who expects their total tax liability for the year to be lower than the TDS that would be deducted can apply for a lower or nil deduction certificate under Section 197 of the Income Tax Act. The landlord makes this application to their assessing officer, providing details of their expected income and tax, and if the officer is satisfied that the standard TDS would exceed the landlord\’s actual tax liability, they issue a certificate specifying a lower rate, or nil, at which TDS should be deducted. Once the landlord gives you, the tenant, a copy of this certificate, you deduct TDS at the reduced rate specified in it rather than the standard rate, for the period the certificate covers. This mechanism is useful for landlords whose overall income is low, or who have losses or deductions that reduce their tax below the level of the TDS, since otherwise they would have excess tax deducted and locked up until they claim a refund. As a tenant, you should only apply a reduced rate if the landlord actually provides a valid Section 197 certificate; without it, you must deduct at the normal rate. Applying a lower rate without a certificate would leave you exposed to the shortfall. This is more commonly relevant under Section 194-I for larger commercial arrangements, but the principle applies generally. This calculator computes TDS at the standard rates; if your landlord has a Section 197 certificate, you would use the rate specified there instead.
Are the results from this tool accurate?
The tool provides an accurate determination of which TDS section applies to you and computes the TDS at the correct current rates, thresholds and timing for a wide range of common situations. It routes individuals to Section 194-IB, businesses to Section 194-I, and NRI-landlord cases to Section 195, applies the correct thresholds, 50,000 per month, 6,00,000 per year, or none, uses the current rates including the 2% individual rate effective from October 2024 and the 20% no-PAN rate, handles the GST exclusion, and tells you the timing and the form to file. For the great majority of tenants, the result is a reliable guide to exactly what you must do. There are, however, situations that need professional judgement beyond a calculator: NRI-landlord cases under Section 195 involve treaty rates and additional compliance that vary by country and should be handled with a chartered accountant; complex joint-ownership arrangements, mixed leases bundling property with equipment, and cases where the landlord has a Section 197 lower-deduction certificate all require case-specific treatment. The tool also uses the rules as they stand for the current year, and rates or thresholds can change with each Budget, so verify against the latest position for the exact year of your transaction. So treat the result as an accurate, up-to-date guide for standard cases and a strong starting point for complex ones, and for NRI landlords or unusual arrangements, confirm with a qualified tax professional. Nothing here is a substitute for professional tax advice on your specific facts.
Do I need to deduct TDS if I claim HRA?
Claiming House Rent Allowance, or HRA, and deducting TDS on rent are two separate obligations that can both apply, and they should not be confused. HRA is a tax exemption you claim on your own salary for the rent you pay, reducing your taxable income, whereas TDS on rent is your duty as a tenant to deduct tax from the rent before paying the landlord. Whether you must deduct TDS depends purely on the rent amount and the section rules, not on whether you claim HRA. So if you are an individual paying rent above 50,000 a month, you must deduct 2% TDS under Section 194-IB regardless of whether you also claim HRA. There is, however, a related HRA rule worth knowing: if your annual rent exceeds 1,00,000 rupees, you must provide your landlord\’s PAN to your employer to claim the HRA exemption, quite apart from the TDS requirement. And of course, at the higher rent levels where TDS applies, you would in any case need the landlord\’s PAN for the TDS itself. So the practical position for a tenant paying, say, 55,000 a month and claiming HRA is that they must both claim the HRA exemption on their salary and deduct 2% TDS under 194-IB, and they need the landlord\’s PAN for both. The two obligations run in parallel. This calculator handles the TDS side; for the HRA exemption on your salary, use an HRA calculator, and remember that both may apply to the same rent.
