Section 194I: Definition, Meaning & Guide for Indian Businesses

Section 194I requires TDS on rent payments. 10 percent on land or building rent, 2 percent on plant/machinery rent. Threshold 2.4 lakh rupees per year.

What is Section 194I?

Section 194I covers TDS on rent payments for land, buildings, plant, and machinery. Rate is 10 percent for rent of land or building, and 2 percent for rent of plant or machinery. Threshold: TDS applies if aggregate rent in a financial year exceeds 2.4 lakh rupees per payee. Salaried individuals paying rent above 50,000 per month must deduct TDS at 5 percent under Section 194IB.