TDS credit to landlord u/s 194I(B) in case 10% is deducted as opposed to 2% as per act.

[ROHIT GOEL]

Dear Professionals

TDS as per section 194I(B) is 2%, however in case 10% is deducted and deposited by filing form 26QC then will entire benefit of 10% will be given to landlord in his form 26AS or not?. There are reports that only correct rate (2%) benefit will flow to the landlord, despite tenant deducting and depositing 10% TDS. If that is the case,why is there no field check for TDS rate in form 26QC and why is it allowing to file the form with 10% TDS rate.

AI Summary

TDS credit mismatch under landlord rent deduction raises concern where excess tax is filed through Form 26QC. Issue concerns TDS credit to a landlord under section 194I(b) where the tenant deducts and deposits tax at 10% instead of the prescribed 2% through Form 26QC. The query asks whether the landlord's Form 26AS will reflect credit for the entire amount deducted or only the credit corresponding to the correct statutory rate, and questions why Form 26QC permits filing with an incorrect TDS rate.