Section 194-I TDS on Rent.

Section: 194-I

Payer: Any person, (not being an individual or a Hindu undivided family, who are not liable to tax audit u/s 44AB in the last PY)

Payee: Any resident Person

Nature of Payment: Any income by way of rent

TDS Rate:

• Machinery or Plant or Equipment - 2%
• Land, Building & furniture - 10%

Timing of Deduction: At the time of credit of such income or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier.

Note:

• No Tds if Rent is upto Rs 2,40,000.
• No Tds shall be made where rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in Section 10(23FCA) , owned directly by such business trust.
• Non Refundable deposit, arrears of rent received, advance rent also eligible for TDS.
• If Rent includes municipal taxes - No Tds on municipal taxes.

Explanation—For the purposes of this section,—

"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,—

(a) land; or

(b) building (including factory building); or

(c) land appurtenant to a building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

whether or not any or all of the above are owned by the payee;

Source " income tax india"

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