Let’s discuss more the form 16C and challan 26QC for deducting the TDS on rent. So as to draw a higher rental income group under the tax, the government in budget 2017 has incorporated a new section 194IB. Provision, the person and HUFs who file the rent of INR 50k or more shall need to deduct 5% TDS. from the date 1st June 2017. The section gets in force.
Up till 31st March 2017 those people or HUF or need to deduct the TDS with 10% if the tax audit (u/s 44AB) is liable to apply for them. Thus inside the case the person or HUF shall not cover beneath the tax audit gets not included from deducting the TDS irrespective of the payment for rent. However, now these people or HUF will indeed need to deduct the TDS of 5% if the payment of rent is Rs 50000 or more. Towards the FY 2020-21 rent payment beneath section 194IB through the person or HUF poses the TDS with a low rate at 3.75% towards the payment from 14th May 2020 until 31st March 2021.
TDS Deduction Time
Once in the fiscal year, the TDS is needed to be deducted. It could be either deducted during the time of the credit of the rent to the payee account (landlord) towards the last month of the fiscal year or the last month of the tenancy if the property is not filled for the complete year. During the time of payment, the same can also get deducted, whichever is earlier. If you are searching for tools regarding challan-cum-statement 26QC payment under TDS your search ends here. Now you can submit challan 26QC payment via Gen TDS Software without any error.
Submit Query Regarding TDS Challan 26QC Software
Payment of TDS Submission
Within the time period of 30 days, the TDS deducted must be furnished from the finish of the month where the tax was deducted. It will be attached with the challan (cum) statement in 26QC form under TDS. The TDS deducted could be furnished to the government via the electronic method through the Reserve Bank of India, State Bank of India, or any other approved bank.
Certificate Form 16C for TDS Deduction to Payee Furnishing
Form 16C is an innovative TDS certificate made through the government of India. It shows how much TDS in amount was deducted on rent with the rate of 5 % via individual or HUF (u/s 194IB). It is similar to Form 16 or Form 16A provided in the circumstances of salary along with the additional payments. Form 16C to the payee is needed to get filed in 15 days by the individual whose TDS is deducted upon the rent from the last date of filing the challan cum statement in 26QC Form.
Read Also: Generate Challan Form 26QB by Gen TDS Return Software
For Example:
Vijay, who is a salaried employee is said to furnish the rent of Rs 60,000 per month. A 5% TDS is deducted for the complete year in the month of March. Rs 36,000 (5%*7,20,000) is the amount of TDS that is deducted. Now, this TDS must be deposited adjacent with Form 26QC before 30th April, that is in 30 days from the finish of the month in which TDS gets deducted. Indeed, Vijay must file Form 16C to the landlord prior to 15th May, i.e. in 15 days from the last date of filing the challan cum statement in Form 26QC.
For FY 2020-21, because of the pandemic, the TDS rate below section 194IB is 3.75% for payments from 14 May 2020 till 31st March 2021. The TDS dues to get deposited in March beneath section 194IB comprises the dues computed with 5% till 14 May 2020 and at 3.75% for the rest of FY 2020-21. Form 16C or Form 26QC can be downloaded online from the TRACES website.
