Section 194-IB and Section 194-I(b) both deal with TDS on rent, but they apply in different contexts, to different types of deductors, with different thresholds and rates.

 

Section 194-IB and Section 194-I(b) both deal with TDS on rent, but they apply in different contexts, to different types of deductors, with different thresholds and rates.

Here's a clear comparison between Section 194-IB and Section 194-I(b):

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🔍 Comparison: Section 194-IB vs 194-I(b)

Particulars	Section 194-IB	Section 194-I(b)
Applicability	Individuals/HUFs not liable to tax audit	All persons liable to audit under Income Tax Act
Type of Payment	Rent (land, building, or both)	Rent of land/building
Threshold Limit	Rent > ₹50,000 per month	Aggregate rent > ₹2,40,000 per year
TDS Rate	5%	10% (for land/building)
TDS Timing	Deduct in last month of FY or tenancy	Deduct at the time of credit or payment, whichever is earlier
TAN Required	❌ Not required	✅ Required
Form for TDS Payment	Form 26QC (challan-cum-return)	Challan 281 + TDS return (Form 26Q)
TDS Certificate	Form 16C	Form 16A
Tenant Type	Individual or HUF not liable to audit	Company, firm, LLP, etc., or individuals liable to audit
Landlord Type	Must be resident	Must be resident

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✅ When to use which?

Scenario	Section
You are an individual paying ₹60,000/month rent for your house and not running a business – and not liable for tax audit	194-IB
You are a company or businessman paying office rent of ₹30,000/month	194-I(b)
You are an individual business owner with turnover > ₹1 crore (tax audit applicable), and paying rent ₹25,000/month	194-I(b)

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⚠️ Common Mistakes to Avoid:

• Using Section 194-I(b) instead of 194-IB when the payer is an individual not liable to audit.
• Not filing Form 26QC or issuing Form 16C when deducting under 194-IB.
• Thinking TDS under 194-IB is monthly — it's once a year only!