Clarification on 194I:
As rent on plant & machinery and rent on property & furniture attracted different rate of TDS, there was lot of confusion which resulted in incorrect deductions leading to unintentional defaults.
This has now been addressed and from the FY: 2013-14, Section 194I (Rent Payment) has now been bifurcated into two sections as under:
- 194I(a) – Rent for Plant & Machinery – 2%
- 194I(b) – Rent for land, building & furniture – 10%
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