TDS on Rent Under IT Act 2025: What Changed for Tenants and Landlords
IT Act 2025 renumbered every TDS section and form. Here's what changed, what didn't, and how to stay compliant.
The Income Tax Act, 2025 is live as of April 1, 2026. If you pay or receive rent in India, every section number and form name you knew has changed. The good news: rates, thresholds, and deadlines are exactly the same.
This guide covers what changed, what didn't, and what you need to do.
What Changed: Section and Form Numbers
The new Act renumbers everything. Here's the mapping that matters for rent:
| What | Old (IT Act 1961) | New (IT Act 2025) |
|---|---|---|
| TDS on rent (resident landlord) | Section 194-IB | Section 393(1) |
| TDS on rent (NRI landlord) | Section 195 | Section 393(2) |
| Monthly filing (resident) | Form 26QC | Form 141 |
| Quarterly return (NRI) | Form 27Q | Form 144 |
| TDS certificate (resident) | Form 16C | Form 132 |
| TDS certificate (NRI) | Form 16A | Form 131 |
| TDS deposit challan (NRI) | Challan ITNS 281 | Challan ITNS 281 (unchanged) |
If you've been filing under the old names, everything you did still counts. Your Form 26AS credits, past filings, and CIN references are all intact. Only the labels changed.
What Didn't Change: Rates, Thresholds, Deadlines
| Resident Landlord: Section 393(1) | NRI Landlord: Section 393(2) | |
|---|---|---|
| TDS Rate | 2% | 31.2% (30% + 4% cess) |
| Threshold | Monthly rent > ₹50,000 | No threshold (any amount) |
| Filing form | Form 141 (monthly) | Form 144 (quarterly) |
| Deposit form | Integrated into Form 141 | Challan 281 (by 7th of next month) |
| TDS certificate | Form 132 | Form 131 |
| TAN required? | No (PAN login) | Yes |
| Portal | incometax.gov.in | incometax.gov.in + TRACES |
The ₹50,000/month threshold, the 2% and 31.2% rates, the 30-day filing window for Form 141, the 7th-of-month deadline for Challan 281. All unchanged.
Who Needs to Deduct TDS?
Tenants with resident landlords (Section 393(1)): If your monthly rent exceeds ₹50,000, you must deduct 2% TDS before paying. File Form 141 within 30 days of the month-end. No TAN needed, just your PAN.
Tenants with NRI landlords (Section 393(2)): If your landlord is a non-resident, you must deduct 31.2% TDS regardless of rent amount. You need a TAN, must deposit via Challan 281 by the 7th of the next month, and file Form 144 quarterly.
Not sure which applies? Read our detailed guides: Section 393(1) for resident landlords or Section 393(2) for NRI landlords.
How to File: Quick Reference
Resident Landlord: Form 141
- Deduct 2% from rent and pay the balance to your landlord
- Log in to incometax.gov.in with your PAN
- File Form 141 under e-Pay Tax (payment is integrated into the form)
- Download Form 132 from TRACES and issue to your landlord
NRI Landlord: Challan 281 + Form 144
- Deduct 31.2% from rent and pay the balance to your landlord's NRO account
- Log in to incometax.gov.in with your TAN
- Deposit TDS via Challan 281 by the 7th of the following month
- File Form 144 quarterly on TRACES
- Download Form 131 from TRACES and issue to your landlord
Not sure which form does what? See Form 141 vs Form 132 vs Challan 281, explained.
Common Mistakes
- Using 2% for NRI landlords. The rate is 31.2%, not 2%. This is the most expensive mistake tenants make.
- Deducting but not filing. Deducting TDS from rent is only half the job. You must file the form (141 or 144) and deposit the amount.
- Late deposits. Interest at 1.5% per month is charged from the due date. For Challan 281, that's the 7th. For Form 141, it's 30 days from month-end.
- Searching for old form names on the portal. The portal now uses the new names. Form 26QC is now Form 141. If you can't find it, you're looking for the old label.
ZentedOut is a free rental portfolio manager: agreements, TDS compliance, rent tracking, and receipts.
More on TDS: Section 393(1) guide | Section 393(2) for NRI landlords | Which form do you need?
This article is for informational purposes only and does not constitute tax or legal advice. Consult a chartered accountant for guidance specific to your situation. Filing procedures and form numbers are based on the Income Tax Act, 2025 as of the date of publication and may change based on subsequent government notifications.