IT Act 194IChapter XVII · Collection And Recovery Of Tax

Section 194I · [ Rent. [Inserted by Act 32 of 1994, Section 40 (w.e.f. 1.6.1994).]

Text size — level 1 of 4
- ] [Inserted by Act 14 of 2001, Section 71 (w.e.f. 1.6.2001).][Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident] [ Substituted by Act 32 of 2003, Section 77, for " Any person not being an individual or a Hindu undivided family who is responsible for paying to any person" (w.e.f. 1.6.2003).][any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, ] [Inserted by Act 32 of 1994, Section 40 (w.e.f. 1.6.1994).][deduct income-tax thereon at the rate of-] [ Substituted by Act 22 of 1995, Section 35, for " deduct income-tax thereon at the rate of twenty per cent." (w.e.f. 1.7.1995).]

(a)

[ two per cent. for the use of any machinery or plant or equipment; and [Substituted by Act 33 of 2009, for Clauses (a), (b) and (c) (w.e.f. 1.10.2009).]

(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:]
[Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and twenty thousand rupees:] [Inserted by Act 32 of 1994, Section 40 (w.e.f. 1.6.1994).][Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44-AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section.] [ Inserted by Act 20 of 2002, Section 77 (w.e.f. 1.6.2002).][Provided also that no deduction shall be made under this section where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust.] [Inserted by Finance Act, 2015 (No. 20 of 2015), dated 14.5.2015.][Explanation. - For the purposes of this section,-] [Inserted by Act 32 of 1994, Section 40 (w.e.f. 1.6.1994).]

(i)

[ "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,- [ Substituted by Act 29 of 2006, Section 15, for Clause (i) (w.e.f. 13.7.2006).]
(a)land; or
(b)building (including factory building); or

(c)

land appurtenant to a building (including factory building); or

(d)

machinery; or

(e)

plant; or

(f)

equipment; or

(g)

furniture; or

(h)

fittings, whether or not any or all of the above are owned by the payee;]

(ii)

[ where any income is credited to any account, whether called "Suspense Account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.] [Inserted by Act 32 of 1994, Section 40 (w.e.f. 1.6.1994).]

Your private note on this section

Only you can see this note.