What is the TDS rate on Lease Rental payment

TDS 14276 views 11 replies

What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.

Replies (11)

In my opinion TDS on lease rental would fall under the purview of sec. 194I.

Dear Varsha,

As per Sec 194I , TDS on Rent is to be deducted as follows -

a) two per cent for the use of any machinery or plant or equipment; and

 (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:)

No deduction is to be made if Rent to a person doesnot exceed 1,20,000 in a year.

Originally posted by : Varsha Kalantri

What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.

 This is for vehicles acquired on finance lease. On  which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.

Originally posted by : Varsha Kalantri

What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.

 This is for vehicles acquired on finance lease. On  which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.

Originally posted by : Varsha Kalantri

What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.

 This is for vehicles acquired on finance lease. On  which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.

Then TDS should be deducted @ 2% u/s 194I as hire of machinery

Yes it is 2% on hiring of plant & Machinery. 

Originally posted by : Varsha Kalantri




Originally posted by : Varsha Kalantri






What is the TDS rate on Lease Rental payment. Whether on lease rents TDS is applicable.






 This is for vehicles acquired on finance lease. On  which it is to be deducted Principal amount or Finance charge or on both i.e. Lease rent.

TDS should be deducted @ 2 % on Lease rent.

Sec.194I ,rate 2%

does 2% apply even for lease rent of car paid by company  as an expense on behalf of director?

Yes 2% TDS would be applicable.

Such lease rent payment on behalf of the director would also  be considered as perks in the hands of the director


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