Clarification on 194I

      11 Comments on 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%

11 thoughts on “Clarification on 194I

  1. vinod chhangani

    can sole my problems i am confuse in sec 194IA & 194I plz clear my problem i got a tds form from company i attach my 3 truck in company .n i download my 26 as there show sec 194IA but sec 194IA sale of immovable property ya rent income

    Reply
  2. Rahman

    194 I will be applicable only if rent is more than 180,000 in a year.

    what if a person have got 3 tenants of 1,50,000 each rent? whether TDS applies?

    Reply
  3. ramakrishna

    ok then what is the section for 1%tds (individuals)

    plsease clarify me this doubt

    thanking
    ramakrishna
    9948220191

    Reply
  4. Shweta

    Hi,

    Just need to confirm that where it is written in sec 194I that 194I(a) id for plant and machinery and 194I(b) is for furniture and building. Can u pls share any content of law so we can be sure and safe?

    Please confirm asap.

    Thanks in advance

    Shweta

    Reply
    1. TDSMAN Post author

      Dear Madam,

      We confirmed this with our Chartered Accountant. Further we didn¢t find this notification in the department website.

      Reply
    2. Ashutosh Kumar Jha

      Dear Shweta Ji,

      it is clearly mentioned about TDS on rent of Machinery or plant or equipment in sub-clause (a) and TDS on rent of other than these items in sub-clause(b) of Sec 194I of the IT Act-1964.

      with thanks & regards

      Ashutosh Kumar Jha
      CA Final Student

      Reply
  5. Rajkumar Mukherjee

    was getting confused having seen the the new options in RPU Version 3.5

    Now it is clear

    Thanks a lot.

    Reply

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