TDS rate and section for car parking

It seems it is in the nature of renting of land ( parking space ) and building hence tds under section 194I is applicable.

You can treat it as contract if you are providing other services ancillary to car parking like valet parking etc and make a service agreement. then tds will be under Sec 194C at 1% / 2% accordingly. But a service agreement becomes a must.

Sometimes rent component could be considered under 194 I and valet parking( service )compnent as 194C as well.

So all these are possibilities depending on facts of your case.

Thanks 😊

Confirming 194I, with nuances:

• Parking space let out (dedicated slots, as part of or alongside premises): rent for land or building, Sec 194I(b) at 10%. Threshold Rs 50,000 per month or part of a month (from 1 April 2025; earlier Rs 2.4 lakh a year).

• Parking as a managed service (valet, attendants, pay-and-park operator): contract for work, Sec 194C at 1%/2%.

• Deduct on rent excluding GST (CBDT Circular 23/2017).

• GST: renting of commercial parking space is 18% (part of renting of commercial property). If the landlord is unregistered and you are registered, RCM applies (Notf 09/2024-CT(R)).

• Individuals or HUFs not under audit paying more than Rs 50,000 a month: Sec 194-IB at 2%.

• From 1 April 2026: Sec 393 of the Income-tax Act, 2025.