For rent-TDS events governed by the Income-tax Act, 2025, the Income Tax Department directs the applicable individual and Hindu undivided family (HUF) deductors to report rent through Schedule A of Form 141. Section 393(1), Table serial number 2(i), lists a 2% rate when rent crosses ₹50,000 for a month or part of a month in the relevant payer category.
The main 2026 change is the reporting route and section reference. The department says TDS rates and monetary thresholds were retained under the new Act, so Form 141 does not itself create a new rent tax rate.
The date of credit or payment controls the switch
The Income Tax Department’s transition guidance says to use whichever occurs first: crediting the income or paying it. If that event occurred on or before 31 March 2026, the earlier Act applies; if it occurred on or after 1 April 2026, the Income-tax Act, 2025 applies.
Under the earlier rules, Form 26QC was the challan-cum-statement for rent TDS by an individual or HUF. For qualifying events from 1 April 2026, Form 141 is the consolidated statement under the new Act. A payment made later does not move an earlier credit across the transition date.
What Schedule A is for
The Form 141 FAQ identifies Schedule A as TDS on rent paid by an individual or HUF under section 393(1), Table serial number 2(i). The statute lists 2% and a ₹50,000 threshold for a month or part of a month for that row. It separately lists a specified-person category for rent, so the payer category matters; do not choose a rate from the form name alone.
The practical sequence is to identify the earlier of credit and payment, check whether the relevant rent row applies to the payer, then use Schedule A if the deductor falls within its scope. The official FAQ says other assessee categories must use the applicable TAN-based TDS forms or statements. For a case that crosses categories, read the full section and current department guidance before filing.
How to file without confusing rent and property purchase
Form 141 is a common challan-cum-statement for several TDS transactions, but the department says only one transaction type can be selected in a single form. It also says the statement is due within one month from the end of the month in which tax is deducted. The filing path is through PAN login on the e-filing portal for the applicable Form 141 schedule.
Rent is Schedule A. The earlier BestProp.ai explainer on Form 141 for a property purchase from a resident seller covers a different transaction category. A property purchase and monthly rent can use the same consolidated form family while remaining separate schedules with different applicability rules.
What landlords and tenants should check
The tenant is the payer in this rent-TDS route; the landlord is the payee whose details are reported. Before filing, match the agreement and payment record to the correct tax period, verify the rent threshold and payer category, and keep the challan and statement reference with the rent ledger. The Income Tax Department says its transition uses the earlier of credit or payment, which can differ from the date money reaches the landlord.
This is general compliance information, not an individual tax calculation. The current law, payee status and deductor category decide the applicable treatment; a form label alone does not settle those facts.
What form reports qualifying rent TDS from April 2026? The Income Tax Department lists Schedule A of Form 141 for rent paid by an individual or HUF under section 393(1), Table serial number 2(i).
What threshold and rate does that row list? Section 393 lists 2% and ₹50,000 for a month or part of a month for the relevant category. The Act has a separate category for specified payers, so check which row applies.
Does Form 141 Schedule A replace Form 26QC for earlier events? No. The department says events on or before 31 March 2026 remain under the earlier Act and form; the new Act applies when the earlier of credit or payment is on or after 1 April 2026.
Sources and scope
This article uses the Income Tax Department’s transition guidance, its Form 141 FAQ and the official Section 393 text, retrieved on 12 October 2026. The threshold and rate are tied to the specified table row; this article does not determine a reader’s individual tax position. The hero is an AI-generated conceptual illustration by BestProp.ai, not an official tax form.