How this calculation works
Section 393(1), Table 2(i), applies the supported 2% case to the entire entered rent when the monthly threshold is exceeded. Exactly ₹50,000 does not exceed that threshold. The last-month cash-flow result shows the effect of deducting the modeled amount at the year-end or tenancy-end point.
If monthly rent > ₹50,000: withholding = 2% × monthly rent × months; otherwise zeroA worked example
For the supported resident-landlord case, ₹60,000 rent for twelve months totals ₹7,20,000. At 2%, modeled withholding is ₹14,400, leaving ₹45,600 of the last month’s rent after that deduction.
Good to know
Tax year 2026–27 only. Confirm the tenant is outside the specified-person category. Excludes nonresident landlords, business/specified-person withholding, invalid or absent PAN, lower-deduction certificates, rent changes, part-month and multiple-property cases. It does not prepare a return or calculate the landlord’s final tax.
Reference: Income-tax Act 2025: section 393(1), Table 2(i) (opens in a new tab) ↗
Check the payer and landlord scope first
This page supports only the qualifying individual/HUF tenant case outside the specified-person category, with a resident landlord and valid PAN. A company or another specified payer can fall under a different table entry and rate. A nonresident landlord is also outside this calculation.
The law reference is Income-tax Act 2025 section 393(1), Table 2(i), for tax year 2026–27. It should not be treated as a calculator for every payment described as rent or for an earlier payment period.
The HRA exemption calculator concerns a tenant’s allowance claim. It does not change the rent-withholding arithmetic for the supported payer and landlord case.
The threshold is a trigger rather than a deduction
For the supported case, monthly rent must exceed ₹50,000. When it does, the 2% modeled withholding applies to the entire rent in the entered unchanged-rent period, rather than just the excess over ₹50,000.
For ₹60,000 a month across twelve months, total rent is ₹7,20,000 and modeled TDS is ₹14,400. Exactly ₹50,000 monthly does not exceed this threshold, so the supported calculation returns zero.
Keep withholding and final tax separate
The last-month figure illustrates cash remaining after the modeled year-end or tenancy-end deduction. The statutory timing refers to credit or payment for that last month, as applicable. No filing date or payment instruction is generated.
The landlord’s final income tax is another calculation. The HRA exemption calculator likewise addresses the tenant’s allowance exemption, not withholding. Keeping these questions separate helps avoid treating a tax credit, a rent payment and an exemption as the same amount.
A few questions, answered
Do I deduct only on rent above ₹50,000?
In this supported case, exceeding the monthly threshold triggers calculation on all rent in the entered period, not only the excess.
Does this support a landlord without a valid PAN?
No. Higher-rate, missing-PAN and certificate cases need separate current-rule handling and are excluded.
What if rent changes during the year?
This form requires one unchanged monthly rent over whole months in one tax year. It does not determine threshold and deduction treatment for varying-rent arrangements.