TDS Rent 94i
This query is : Resolved
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.
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.
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.
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.
07 May 2025
Thank you sir it really helped us
07 May 2025
You are welcome.
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