Section 194-I → Section 215
TDS on Rent
Quick Answer
Section 194-I of the Income Tax Act, 1961 (TDS on Rent) corresponds to Section 215 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 194-I
Section 194-I of the 1961 Act sets out the rules on TDS on rent. TDS @ 2% on plant/machinery and 10% on land/building/furniture if rent exceeds Rs. 2.4 Lakhs.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 194-I is retained and renumbered as Section 215 of the Income-tax Act, 2025. Retained. Applies to businesses/auditable individuals paying rent.
The transition impact on Section 194-I is assessed as Critical. Major compliance for commercial tenants.
Sec 194-I
Provision Summary
TDS @ 2% on plant/machinery and 10% on land/building/furniture if rent exceeds Rs. 2.4 Lakhs.
Sec 215
Provision Summary
Retained. Applies to businesses/auditable individuals paying rent.
Key Changes & Highlights
- Rate for rent of plant/machinery remains 2%.
Frequently Asked Questions
Which subject does Section 194-I of the 1961 Act cover?
Section 194-I of the Income Tax Act, 1961 covers TDS on rent. TDS @ 2% on plant/machinery and 10% on land/building/furniture if rent exceeds Rs. 2.4 Lakhs.
What is the new section number for Section 194-I under the Income-tax Act, 2025?
Section 194-I of the Income Tax Act, 1961 maps to Section 215 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Applies to businesses/auditable individuals paying rent.
How does the Income-tax Act, 2025 affect Section 194-I in practice?
The transition impact for Section 194-I is rated Critical. Major compliance for commercial tenants.
What is new about Section 194-I under the Income-tax Act, 2025?
Rate for rent of plant/machinery remains 2%. These points are specific to Section 194-I (TDS on Rent).
Disclaimer: This mapping of Section 194-I (TDS on Rent) to Section 215 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 194-I is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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