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<h1>Section 194IB: Tax Deduction Required on Annual Rent Payments, Timing Depends on Full Year or Early Vacancy</h1> Section 194IB mandates the deduction of tax at source on rent payments. If the property is rented for the entire year, tax must be deducted at the time of payment or when the rent is credited to the payee's account for the last month of the financial year, whichever occurs first. If the property is vacated during the year, the deduction should occur at the time of payment or when the rent is credited for the last month of tenancy, whichever is earlier.