TDS on Rent Income U/s. 194-I of Income Tax Act, a new Provision.

On Land / Building / Furniture / Fittings Rent Income, the TDS Deduction is must under Section 194-I of Income Tax Act.  As per the latest ammendment in Section 194-I,  the rent income of Plant / Machinery / Equipments for all parties will entertain TDS at 2% and renting of Land / Building / Furniture / Fittings at 10% for all types of assessees.

Limit of Receipts:
The provision are applicable only in cases where the person making the payment of rent is an individual or HUF having turnover of more then Rs. 40 Lakhs from business or gross receipts of more than Rs.10Lakhs from profession in the immediately preceding financial year or any other person responsible for paying to a resident any income by way of rent.

How much Minimum Amount to Deduct TDS?
The TDS is required to be deducted in case the rent paid or payable to a particular person during a financial year exceeds Rs. 1,20,000.
 
On Which Property ?
Machinery, Plant and equipments, building whether rented together with building or separately W.e.f. 1-4-2009, education cuss or H.E.C. Is not required to be deducted at the time of making deduction of tax at source in case of payment to resident. Surcharge and Education Cess for A.Y. 2010-11.

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