Rent paid by a specified person
- Rate
- 2% for machinery, plant or equipment;10% for land, building, furniture or fittings
- Threshold
- ₹50,000 for a month or part of a month
- Who deducts
- Specified person
- 1961 Act
- Section 194I
Section finders.393(1) [Table: Sl. No. 2(ii)]Act page 468 section 402(37)(b)Act page 507
Section 194I in the Income-tax Act, 2025
The answer
Section 194I of the Income-tax Act, 1961 is s.393(1) [Table: Sl. No. 2(ii)] of the Income-tax Act, 2025. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
As enacted
A definition this turns on
An individual or HUF is a “specified person” (and so must deduct) where preceding-year business turnover exceeds one crore rupees
- Amount in the Act
- ₹1,00,00,000
- 1961 Act
- specified person
Source: the enacted text of the Income-tax Act, 2025 [30 of 2025], as amended by the Finance Act, 2026, pages 468, 507. This page sets out the Table entry as read from the Act; read the section and the Notes to its Table before relying on it for a return or an opinion.
Questions this answers
What is section 194I called in the Income-tax Act, 2025?
Section 194I of the Income-tax Act, 1961 is s.393(1) [Table: Sl. No. 2(ii)] of the Income-tax Act, 2025. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
What is the TDS rate and threshold under s.393(1) [Table: Sl. No. 2(ii)]?
Rate: 2% for machinery, plant or equipment; 10% for land, building, furniture or fittings. Threshold: ₹50,000 for a month or part of a month. It covers: Rent paid by a specified person.