Section 194I - TDS on Rent
Rent of land, building, furniture, plant and machinery
IT Act 2025→Section 393, Chapter X (TDS, consolidated)full mapper →
Rate (Individual / HUF)
10%
Rate (Company / Firm)
10%
Threshold limit
₹2,40,000 p.a.
Key rules
- 10% on rent for land, building, or furniture
- 2% on rent for plant, machinery, or equipment (not separately tracked in the live rate card above - confirm for P&M-specific cases)
- Threshold raised from ₹2,40,000 to ₹6,00,000 p.a. by Budget 2025, effective FY 2025-26
- Advance rent and security deposit also covered if non-refundable
Frequently asked questions
Is TDS applicable on GST portion of rent?▾
No. TDS is only on the rent amount. If GST is separately shown on the invoice, TDS under 194I applies only to the base rent.
Who is required to deduct TDS under 194I?▾
Any person (except individuals and HUFs who are not subject to tax audit) paying rent exceeding the applicable threshold (₹6,00,000 per annum since Budget 2025) must deduct TDS.
Does 194I apply if I pay rent to my relatives?▾
Yes, 194I applies to all rent payments above the threshold regardless of the relationship between payer and payee.
Related TDS sections
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