The 60-second version
Section 194I requires tenant to deduct 10% TDS on rent above ₹2.4 lakh per year to resident landlord — 5% for machinery. I obtain landlord PAN, deduct monthly, file 26Q.
Tenant deducts 194I — landlord credits via 26AS
Section 194I applies when individual/HUF tenant pays rent above ₹2.4 lakh per year to resident landlord.
10% on land/building/furniture, 2% on plant/machinery/equipment — verify payment nature.
26Q lane: Form 26Q guide.
194I vs 194IB
| Section | Rate | Who deducts |
|---|---|---|
| 194I | 10% / 2% | Tenant if audit/not individual |
| 194IB | 5% | Individual tenant > ₹50k/month |
| 195 | 30%+ | Rent to NRI landlord |
| 80GG | Deduction | Self-employed no HRA |
Tenant 194I sequence
Landlord PAN
Mandatory before first payment.
Track annual rent
₹2.4L threshold.
Deduct monthly
10% on each payment.
26Q + 16A
Quarterly return to landlord.
Flow
Tenant kit
- TAN.
- Landlord PAN.
- Rent agreement.
- Challan.
- 26Q ACK.
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Office rent
Commercial lease usually 194I at 10% — not 194IB.
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0 of 4 checked
Home rent ₹30k/month?
194IB 5% if individual tenant — not 194I.
No landlord PAN?
30% under 206AA — insist on PAN.
NRI landlord?
Section 195 — not 194I.
Co-working?
TDS on rent portion if separately invoiced.
GST on rent?
Commercial rent may have GST — TDS on base ex-GST.
194I vs 194IB?
194IB for individual tenant high residential rent.
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