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Section 194-I rent TDS at 10% for land and buildings or 2% for plant and machinery, with the Rs 50,000 per month threshold.
The TDS on Rent Section 194I Calculator applies section 194-I of the Income-tax Act to a rent payment: 2% where plant, machinery or equipment is hired and 10% where land, a building, furniture or fittings are let. It tests the rent against the Rs 50,000 for a month or part of a month threshold introduced by the Finance Act 2025, and against the earlier Rs 2,40,000 annual limit for financial years up to 2024-25. Meant for companies, firms and audited proprietors who pay office, warehouse, factory or equipment rent and need the per-month deduction and net payout.
Open TDS on Rent Section 194I Calculator on AltFTool — it loads instantly in your browser.
Choose What is let out, either Plant, machinery or equipment at 2% or Land, building, furniture or fittings at 10%, then enter Monthly rent, excluding GST (INR).
Set Months of rent in this financial year, pick FY 2025-26 onwards (Rs 50,000 per month) or FY 2024-25 or earlier (Rs 2,40,000 per year), and untick Landlord has furnished a valid PAN when section 206AA applies.
Read TDS on each month's rent with the Rate applied, Threshold in force, TDS for the period and Net rent per month rows, then press Copy result for the payment voucher.
Separates the 2% plant and machinery rate from the 10% land and building rate.
Uses the Rs 50,000 monthly test in force from 1 April 2025, with the old annual test retained.
Gives rent after deduction per month and for the whole period, ready for the payment voucher.
2% on rent for plant, machinery or equipment and 10% on rent for land, a building including a factory building, land appurtenant to a building, furniture or fittings. Payments to residents carry no surcharge or health and education cess.
Rs 50,000 for a month or part of a month. The Finance Act 2025 replaced the earlier Rs 2,40,000 per financial year test with effect from 1 April 2025, so a rent of Rs 50,000 or less a month attracts no deduction even if the yearly total is large.
No. Where GST on the rent is shown separately in the invoice or agreement, tax is deducted on the rent alone, as clarified by CBDT Circular 23/2017. Only a consolidated bill with no separate GST figure is taken at its full value.
Only if your accounts were subject to tax audit under section 44AB in the preceding financial year. Other individuals and HUFs paying more than Rs 50,000 a month for land or a building fall under section 194-IB instead (2% via Form 26QC, no TAN needed) — 194-IB does not extend to plant, machinery or equipment rent, which stays outside TDS for an unaudited individual/HUF. Confirm which section applies with a tax professional.
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