TDS on Rent under section 194I of IT Act

NEW DELHI: Section

194I

of

Income Tax Act

applicable for those who are having rental income from land, building, plant & machinery, furniture & fittings etc.


As per the law, any person, not being an individual or a Hindu undivided family (HUFs), who is responsible for paying a rent to a resident can deduct income-tax at source. The

tax

deduction shall be made at the rate of—

(a) 2% for the use of any machinery or plant or equipment; and

(b) 10% for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:

As per provision under this Act, no deduction shall be made where the aggregate of the amounts of rent credited or paid or likely to be credited or paid during the financial year, does not exceed Rs 1.8 lakh.

Also, any individual or a HUFs, whose total income exceed the monetary limits specified under clause (a) or clause (b) of section 44AB shall be liable to deduct income-tax at source under this section.

Here "rent" means any payment under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of land, building (including factory building), land appurtenant to a building (including factory building), machinery, plant, equipment, furniture, fittings etc.

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