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Section 194I – TDS on Rent

Section 194I of Income Tax Act - TDS on Rent

Want to know about “TDS on Rent i.e. Section 194I“? we have got you covered. Read AtoZ of Section 194I of Income Tax Act.

Applicability and Rate of TDS

Any person, who is responsible for paying to a resident any income by way of rent shall deduct income tax at the rate of:
  1. 2% in respect of rent for plant, machinery or equipment;
  2. 10% in respect of other rental payments (i.e., rent for use of any land or build ing, including factory building, or land appurtenant to a building, including factory building, or furniture or fixtures).

However, an individual or HUF whose total sales, gross receipts or turnover from the business or profession carried on by him do not exceed the monetary limits of Rs.1 crore and Rs.50 lakhs, respectively, specified under section 44AB during the immediately preceding financial year is not liable to deduct tax at source.

Time of deduction

This deduction is to be made at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or by a ny other mode, whichever is earlier.

Where any such income is credited to any account, whether called “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section will apply accordingly.

Threshold limit

No deduction need be made where the amount of such income or the aggregate of the amounts of such income credited or paid or likely to be cre dited or paid during the financial year to the account of the payee does not exceed Rs.1,80,000.

Meaning of Rent

“Rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any –

  1. land; or
  2. building (including factory building); or
  3. land appurtenant to a building (including factory building); or
  4. machinery; or
  5. plant; or
  6. equipment; or
  7. furniture; or
  8. fittings,
whether or not any or all of the above are owned by the payee.

Hope you will get to know about “Section 194I – TDS on Rent“. In case you need any help or assistance you can mail at +91-84483-79180.

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