TDS Rent 94I

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This discussion clarifies the TDS rules for rent payments under Section 94I for the financial year 2025-26. If your monthly rent for a building is £50,000, the annual rent of £6,00,000 exceeds the threshold. As an entity liable for tax audit (company, partnership, LLP, individual/HUF), you must deduct TDS at 10% on rent for land, building, or furniture. TDS is applicable either when rent is credited to the landlord's account or when it's actually paid.

Kamal Singh

Kamal Singh (Querist)
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07 May 2025 Hi experts

Please help us to understand new TDS rule, particularly 94i Rent, in our case we pay Rs.50000 monthly Rent for building, what would be the rule for FY 2025-26 in respect of 94i, should we deduct TDS or not? please explain briefly.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 May 2025 If you are any other entity (e.g., company, partnership firm, LLP, or an individual/HUF liable to tax audit):
You will be governed by Section 194-I.
Since your monthly rent is Rs. 50,000, the annual rent will be Rs. 6,00,000, which exceeds the annual threshold limit for TDS under Section 194-I.
You are required to deduct TDS at the rate of 10% if the rent is for land, building, or furniture. If the rent is for plant and machinery, the TDS rate is 2%.
TDS must be deducted at the earlier of the following:
At the time of credit of the rent to the account of the payee (landlord).
At the time of actual payment of the rent, whether in cash, cheque, or any other mode.

Kamal Singh

Kamal Singh (Querist)
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07 May 2025 Thank you sir it really helped us

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 May 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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