TDS Section 194I(a) — Rent of plant & machinery / equipment
FY 2025-26 · Rate 2%
What does this section cover?
TDS on rent paid for plant, machinery, or equipment (cars on lease, generators, industrial equipment).
Why this section: Rent paid for plant/machinery/equipment above ₹6L aggregate per FY attracts 2% TDS — lower than rent for land/building.
Key facts
- Threshold
- ₹6,00,000 per FY (raised from ₹2,40,000 by Finance Act 2025; ₹50,000/month proxy)
- Applicable for
- FY 2025-26
- Who deducts
- Companies, firms, individuals/HUFs (if turnover > ₹1 cr / ₹50 L in prev FY)
- Paid to
- Owner of plant/machinery/equipment
- Statutory source
- Section 194I, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194I(a) is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.