TDS Rate Chart Section 194-I — TDS on Rent
Section 194-I — TDS on Rent
Income Tax Act 1961 — s.194-I · ITA 2025 — s.393 + 402
Rate and threshold
| Condition | Rate |
|---|---|
| Plant, machinery, or equipment | 2% |
| Land, building, furniture, or fittings | 10% |
- Threshold
- ₹50,000 per month or part of a month
- Timing of deduction
- At credit or payment, whichever is earlier. Deposit by the 7th of the following month (30 Apr for March).
- Who deducts
- Any person other than individual/HUF; individuals/HUF if turnover exceeded ₹1 crore (₹50 lakh profession) in the preceding FY (smaller individuals fall under s.194-IB instead)
- Payee
- Resident
Threshold history
| Period | Value | Amended by |
|---|---|---|
| Until 31 Mar 2025 | ₹2,40,000 per FY | — |
| From 1 Apr 2025 | ₹50,000 per month or part thereof | Finance Act 2025 |
What this section covers
Rent under any lease/sub-lease/tenancy/arrangement for land, building (incl. factory), machinery, plant, equipment, furniture, or fittings
Worked example
Company office rent ₹80,000/month
₹80,000 > ₹50,000/month → TDS 10% = ₹8,000 per month (building rent).
The monthly test (not annual) applies from FY 2025-26 — a single month above ₹50,000 triggers TDS for that month.
Under the Income Tax Act 2025
From 1 April 2026, s.194-I of the 1961 Act maps to s.393 + 402 of the Income Tax Act 2025 (split mapping, per the official CBDT concordance). Consolidated into the s.393 TDS table under the ITA 2025.
Full 1961 → 2025 mapping for s.194-I →Frequently asked questions
Does 194-I apply on refundable security deposits?
Not on refundable deposits. Non-refundable deposits or deposits adjusted against rent are rent and attract TDS.
Landlord and tenant are both individuals — which section?
If the tenant individual is not liable under s.194-I (turnover below audit-scale), s.194-IB applies at 2% where monthly rent exceeds ₹50,000.
TDS on GST portion of rent?
No — TDS on the rent excluding GST where GST is separately shown (CBDT Circular 23/2017).