TDS on Rent

TDS on Rent Old and New Provisions

TDS on Rent comes under section 194-I of the Income tax Act.  The newly amended 194-I section states that, the renting of Plant/Machinery/Equipments for all parties will entertain TDS at 2% and renting of Land/Building/Furniture/Fittings at 10% for all types of assessees.


The provision are applicable only in cases where the person making the payment of rent is an individual or HUF having turnover of more then Rs. 40 Lakhs from business or gross receipts of more than Rs.10Lakhs from profession in the immediately preceding financial year or any other person responsible for paying to a resident any income by way of rent.

Minimum Amount

The TDS is required to be deducted in case the rent paid or payable to a particular person during a financial year exceeds Rs. 1,20,000.

On Which Property ?

Machinery, Plant and equipments, building whether rented together with building or separately

Rate of TDS on Rent

Particulars Rate upto 30.09.09 Rate w.e.f. 01.10.09
a)      Use of any land, building furniture or fitting 15% (when payee is individual or HUF) 10% for all assesses
b)      Use of plant, machinery or equipment 10% 2% for all assesses

W.e.f. 1-4-2009, education cess or H.E.C. Is not required to be deducted at the time of making deduction of tax at source in case of payment to resident. Surcharge and Education Cess for A.Y. 2010-2011

w.e.f. 1-4-2010 rate will be 20% if payee does not furnish the PAN.


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