Section 194I - TDS on Rent (as amended by Finance Act 2025)

• Applicability

Any person other than Individual & HUF who is paying rent of Plant & Machinery, Equipment, Land, Building or Furniture to a resident person is required to deduct TDS, if amount of rent exceeds Rs. 50,000 per month.

Note: Individual & HUF is also required to deduct TDS, if last year turnover is more than Rs. 1 crore in case of business or Gross receipt is more than Rs. 50 lakhs in case of profession.

• Rate of TDS

In case of rent of Plant & Machinery, Equipment - 2%

In case of Land, Building or Furniture - 10%

• Time for deducting TDS

At the time of credit of such Income to the account of payee or at the time of payment whichever is earlier.

• No TDS is required on Refundable deposits.

• If there are two or more owner of any property then limit of Rs. 50,000 per month will be for each co-owner.