2. The income-tax shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy, if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.
3.The provisions of section 203A(Tax deduction and collection account number) shall not apply to a person required to deduct tax in accordance with the provisions of this section.Therefore deductor (Tenant) shall not required to take Tax deduction and collection account number (TAN).
TDS on payment of rent by individuals or HUF exceeding Rs, 50K or more per month (w.e.f. 01 June 2017)
As per new section 194-IB of Income Tax Act, 1961 inserted by FA, 2017, w.e.f. 01 June 2017:
1. Any Individual or a Hindu undivided family(whose books of account are not required to be audited in immediately preceding financial year u/s 44AB) paying rent to a resident exceeding fifty thousand rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per cent of such income as income-tax thereon.
4. If PAN of recipient is not available, tax is deductible at the rate of 20 per cent (however, in such a case amount of TDS cannot exceed rent payable for the last month of the previous year or last month of tenancy.
Refer extract section 194-IB of Income Tax Act, 1961: