19 December 2011
Section 194I of the Income Tax Act deals with TDS on rent.
TDS on rent is required to be deducted if the payment exceeds Rs. 1,80,000/- during the year.
Rate of TDS:
(a) two per cent for the use of any machinery or plant or equipment (b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings
In this case the annual payment to each party comes to Rs. 4,62,000/-. TDS will be deducted at 2% or 10% depending on the nature of the asset.
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