Section 194-IB → Section 223
TDS on payment of rent by certain individuals or HUF
Quick Answer
Section 194-IB of the Income Tax Act, 1961 (TDS on payment of rent by certain individuals or HUF) corresponds to Section 223 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 194-IB
Provision Summary
TDS @ 5% by individuals/HUFs (not under audit) paying monthly rent exceeding Rs. 50,000.
Sec 223
Provision Summary
Retained. Rate reduced to 2% in recent updates to lower the compliance burden on high-rent tenants.
Key Changes & Highlights
- Rate reduced from 5% to 2% to encourage transparency in the rental market.
Frequently Asked Questions
What does Section 194-IB of the Income Tax Act 1961 deal with?
Section 194-IB (TDS on payment of rent by certain individuals or HUF) TDS @ 5% by individuals/HUFs (not under audit) paying monthly rent exceeding Rs. 50,000.
What is the new section number for Section 194-IB under the Direct Tax Code 2025?
Section 194-IB of the ITA 1961 maps to Section 223 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 194-IB under the new tax code?
Section 194-IB is marked as "Retained" with status "Modified". Impact: Medium - Affects high-income salaried individuals living in premium rentals.
What are the key changes to Section 194-IB under DTC 2025?
Rate reduced from 5% to 2% to encourage transparency in the rental market.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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