Therefore, if local taxes, the price of the estate, etc., are borne by the tenant, no tax is deducted from this sum. However, in Circular 5/2002, the department clarified that if the agreement only applies to collective agreements (collective agreements are normally concluded between companies, tour operators, travel agencies, etc.). For example, for hotels for the purpose of setting only hotel room rates for their executives/customers/customers), this provision should not be interpreted as a room that is regularly used and, therefore, TDS is not applicable in such a situation. Therefore, TDS only applies to the payment of room rental to hotels where rooms are regularly occupied, but if the agreement only applies to a collective agreement, TDS is not applicable. Sections 194IB and 194IC provide TDS for the payment of rent by certain persons or by the Hindu family (HUF) or payment under a given agreement. This payment must be made by a challan declaration, Form 26QC. .