TDS 194I (Rent) Calculator

When this applies

• You pay rent for an office, shop or warehouse and need the deduction.
• You rent plant or machinery and need the deduction at the machinery rate.
• You are checking a 194I deduction on a statement.
• You are computing the net rent to remit to a landlord.

10% TDS on monthly rent of INR 60,000

1. 1Rent: INR 60,000 for the month. Rate: 10% (land or building).
2. 2TDS = 60,000 x 10 / 100 = INR 6,000.
3. 3Net rent payable = 60,000 - 6,000 = INR 54,000.

Deduct INR 6,000 and pay the landlord INR 54,000.

What this calculator does

Work out TDS on rent under section 194I, and the net rent payable. The rate differs between rent for land, building and furniture and rent for plant and machinery, so it is an input.

How this is calculated

Section 194I applies to rent for land, building, furniture and fittings, and to rent for plant and machinery. The deduction is the rent multiplied by the rate: TDS = rent x rate / 100. Rent for land or building is commonly at 10% and rent for plant and machinery at 2%. The deduction applies once the year's rent crosses the section's threshold.

The formula

TDS = rent × rate/100

Common mistakes to avoid

• Using the building rate for machinery

  Rent for plant and machinery is at a lower rate. Applying 10% to machinery rent over-deducts.

• Deducting below the annual threshold

  194I applies once the year's rent crosses the threshold, not from the first payment.

• Forgetting the higher no-PAN rate

  Where the landlord has not furnished PAN, a higher rate applies.

Frequently asked

What is the 194I rate?

Commonly 10% for rent of land, building, furniture and fittings, and 2% for rent of plant and machinery. Enter the rate for what you are renting.

When does 194I apply?

Once the rent for the year crosses the section's threshold. Below it, no deduction is required.

Does it apply to a shop or office lease?

Yes. Rent for a commercial premises is rent for land or building and falls within the section once the threshold is crossed.

Does it apply to a hotel room or a guest house?

Payments that are in substance rent can fall within 194I, though the classification of hotel and similar arrangements has been the subject of rulings. Check the facts against the section.

What if the landlord has not given PAN?

A higher rate applies where PAN is not furnished. Enter that rate.