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TDS on Rent Calculator for Amount Exceeding ₹50,000 per Month (Section 194IB) | 2026

July 25, 2026

🏠 TDS on Rent Calculator (Section 194IB: Rent > ₹50,000/mo)

Enter monthly rent (Must be above ₹50,000 for this rule)
Duration of rent payment in the financial year
If PAN is not provided, TDS is deducted at a higher rate of 20%

📊 Your TDS Deduction Breakdown

How This TDS on Rent Calculator Works (Section 194IB)

Under Section 194IB of the Income Tax Act, any individual or HUF (not liable to tax audit) who pays rent exceeding ₹50,000 per month is required to deduct TDS at the rate of 5%. This TDS on rent calculator for amount exceeding ₹50,000 per month helps tenants quickly compute the exact deduction without needing a TAN (Tax Deduction and Collection Account Number).

Key Rules of Section 194IB

  • Applicability: Only for individuals and HUFs whose books are NOT required to be audited.
  • Threshold: Monthly rent must exceed ₹50,000.
  • TDS Rate: 5% of the total rent. No surcharge or health & education cess is added.
  • No TAN Required: Unlike companies, individuals can deduct this TDS using their PAN card.
  • Deposit Deadline: TDS must be deposited using Challan ITNS 281 within 30 days from the end of the month in which deduction is made.

Step-by-Step Example Calculation

Let's take the example of Rohan, who rents an apartment in Bangalore for ₹60,000 per month. His landlord has provided a valid PAN card.

  • Monthly Rent: ₹60,000
  • Duration: 12 months
  • Total Annual Rent: ₹60,000 × 12 = ₹7,20,000
  • TDS Rate (with PAN): 5%
  • Total TDS to Deduct: 5% of ₹7,20,000 = ₹36,000
  • Net Rent Payable to Landlord: ₹7,20,000 - ₹36,000 = ₹6,84,000

Rohan will deduct ₹3,000 (5% of ₹60,000) every month, deposit it to the government, and pay the remaining ₹57,000 to his landlord.

Common Mistakes Tenants Make

  • Ignoring Section 206AA: If the landlord does not provide a PAN, the tenant MUST deduct TDS at 20% instead of 5%. This tool accounts for that.
  • Missing the Deadline: Failing to deposit the TDS by the 7th of the next month attracts interest at 1.5% per month.
  • Not Issuing Form 16C: After depositing TDS, the tenant must generate and provide Form 16C to the landlord as proof of deduction.

❓ Frequently Asked Questions

Do I need a TAN to deduct TDS on rent under Section 194IB?

No, individuals and HUFs not liable to tax audit can deduct TDS under Section 194IB using their PAN card. A TAN is not required.

What if the landlord does not have a PAN card?

As per Section 206AA, if the landlord fails to provide a PAN, you are legally required to deduct TDS at a higher rate of 20% instead of the standard 5%.

When is the due date to deposit the TDS?

The TDS deducted under Section 194IB must be deposited to the government using Challan 281 within 30 days from the end of the month in which the rent was paid or credited.

Can I claim this TDS in my own Income Tax Return?

No, this TDS is deducted from the landlord's income, not yours. The landlord will claim this TDS credit in their ITR using Form 26AS.

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HRA Exemption Calculator for Semi-Urban City (40% Rule) | Free Tool 2026

July 25, 2026
FY 2026-27 · 40% Rule · Free Tool

HRA Exemption Calculator Semi-Urban City (40% Rule)

1
Salary & HRA Details (Annual)
Required
₹
₹0₹50 L
Enter your total annual Basic Salary plus Dearness Allowance (if applicable).
Required
₹
₹0₹50 L
Check your salary slip or Form 16 to find the exact HRA component.
2
Rent Details
Required
₹
₹0₹50 L
Enter the total rent paid for the entire financial year. (Monthly rent x 12).
3
Your HRA Exemption
Exempted HRA Amount
₹0
Taxable HRA: ₹0
Actual HRA
₹0
Rent - 10% Basic
₹0
40% of Basic
₹0
Calculation Breakdown Least of 3
1. Actual HRA Received ₹0
2. Rent Paid − 10% of Basic ₹0
3. 40% of Basic (Non-Metro) ₹0
Final HRA Exemption ₹0
HRA Exemption Guide 2026
Show

HRA Exemption Calculator for Semi-Urban City (40% Rule) 2026

If you are a salaried employee living in a semi-urban or non-metro city and paying rent, the House Rent Allowance (HRA) can save you a significant amount of income tax. Under the old tax regime, Section 10(13A) allows you to claim an exemption on the HRA component of your salary. This HRA Exemption Calculator for Semi-Urban City uses the standard 40% rule for non-metro cities and tells you exactly how much of your HRA is tax-free.

Many employees falsely assume that HRA exemption is only for people living in metros like Delhi or Mumbai. In reality, if you live in a Tier-2, Tier-3, or any semi-urban city (e.g., Jaipur, Indore, Kochi, Lucknow), your HRA exemption is calculated using the 40% rule, making it highly relevant for a massive section of taxpayers.

What is the 40% Rule in HRA?

According to the Income Tax rules, the HRA exemption is determined by three parameters. The exemption is the least (minimum) of the following three values:

  1. Actual HRA received from your employer during the year.
  2. Rent paid minus 10% of your basic salary (plus DA).
  3. 40% of basic salary (if living in a non-metro/semi-urban city) OR 50% of basic salary (if living in a metro city).

For this calculator, we are specifically using the 40% rule, which applies to all cities in India except the four designated metro cities: Delhi, Mumbai, Kolkata, and Chennai.

Metro vs Non-Metro

Only Delhi, Mumbai, Kolkata, and Chennai qualify as "metros" for HRA purposes, where the 50% rule applies. If you live in Bengaluru, Hyderabad, Pune, Ahmedabad, or any other city, the 40% rule applies to you.

The 3 Rules of HRA Calculation

Let us understand how the math works with a hypothetical example.

Maan lijiye aapki annual Basic Salary + DA is ₹6,00,000. Aapko ₹2,40,000 ka HRA mila hai, aur aapne saal bhar mein ₹2,40,000 ka rent pay kiya hai (₹20,000/month).

Calculation Rule Formula Amount (Example)
Rule 1: Actual HRA Received As per salary slip ₹2,40,000
Rule 2: Rent - 10% of Basic ₹2,40,000 - (10% of ₹6,00,000) ₹1,80,000
Rule 3: 40% of Basic (Non-Metro) 40% of ₹6,00,000 ₹2,40,000
Final Exemption Least of the above 3 ₹1,80,000

In this example, Rule 2 is the lowest at ₹1,80,000. Therefore, out of the ₹2,40,000 HRA you received, ₹1,80,000 becomes tax-free (exempt), and the remaining ₹60,000 is added to your taxable income.

Documents Required to Claim HRA

To claim this exemption from your employer (via payroll TDS) or directly via ITR, you need certain proof:

  • Rent Receipts: Mandatory for the entire year. If the annual rent is below ₹1,00,000, a simple receipt with a revenue stamp is fine.
  • Landlord's PAN: Mandatory if your annual rent exceeds ₹1,00,000. Without this, your employer will not allow the exemption.
  • Rent Agreement: A copy of your leave and license agreement is often requested by HR.
  • Bank Statements: Proof of actual bank transfers to the landlord. Cash payments without receipts are often rejected in scrutiny.
Paying Rent to Parents?

You can claim HRA by paying rent to your parents, provided you actually transfer the money, have a rent agreement, and your parents declare this rental income in their own ITR. You cannot claim HRA if you pay rent to yourself (owning the house).

HRA and the New Tax Regime

One of the biggest changes in recent years is the introduction of the new tax regime. Under the new regime (which is now the default), you cannot claim HRA exemption. Similarly, you cannot claim deductions like 80C or 80D.

If you have a high rent and a high HRA component, the old regime with this HRA exemption is often more beneficial. Our Income Tax Calculator can help you compare both regimes side-by-side to see which one saves you more money.

Frequently Asked Questions (FAQs)

How is HRA exemption calculated for semi-urban cities?
HRA exemption is the least of these three: 1) Actual HRA received, 2) Rent paid minus 10% of Basic Salary, or 3) 40% of Basic Salary. For metro cities (Delhi, Mumbai, Kolkata, Chennai), the third rule is 50% instead of 40%.
Is HRA exemption available under the new tax regime?
No. The HRA exemption under Section 10(13A) is only available if you opt for the old tax regime. The new tax regime does not allow HRA exemption.
Do I need to submit rent receipts to my employer?
Yes. To claim HRA, you must provide rent receipts to your employer. If the annual rent exceeds Rs 1 lakh, you also need to provide the landlord's PAN. If it is below Rs 1 lakh, a simple revenue stamp receipt is sufficient.
Can I claim HRA if I live with my parents?
Yes, you can pay rent to your parents and claim HRA, provided they declare this rental income in their own ITR. You must have a valid rent agreement and proof of bank transfers.
Disclaimer

This article and calculator provide general information for FY 2026-27. Tax rules, slabs, and thresholds can change. The estimates are not a substitute for professional advice. Verify the latest provisions with the Income Tax Department or a qualified chartered accountant before making any decision. Calcifai is not liable for any action taken based on this tool.

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