Section 194I of Income Tax Act

What Is Section 194I of the Income Tax Act?

Payments Covered Under Section 194I

Rent TDS Rates Applicable Under Section 194I

 

TDS is applicable when the payee credits ‘income by way of rent’ to the landlord’s account. Note that if you receive rent through cheque, draft or cash, this tax will be deducted during the time of payment.

The table given below provides an insight into the 194I rent TDS rate based on the payment type.

This includes the rates applicable under 194I (a) and 194I (b) TDS on rent.

Payment Type

TDS Rate For Individuals/Company

TDS Rate For Invalid or No PAN

Rent on building, furniture, land, or fittings

10%

20%

Rent paid on machinery and plant

2%

20%

Circumstances When TDS Under Section 194I Is Not Deductible

Time Limit Within Which Tax Needs to be Deposited

Frequently Asked Questions