1,2 Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, 3 deduct income-tax thereon at the rate of-
4 (a) two per cent. for the use of any machinery or plant or equipment; and
(b) ten per cent. for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:
Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed 5 two hundred and forty thousand rupees:
6 Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section:
7 Provided also that no deduction shall be made under this section where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust.
Explanation.-For the purposes of this section,-
8 (i) "rent" means any payment, by whatever name called, under any lease,
sub-lease, tenancy or any other agreement or arrangement for the use of (either
separately or together) any,-
(a) land; or
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); or
(d) machinery; or
(e) plant; or
(f) equipment; or
(g) furniture; or
(h) fittings,
whether or not any or all of the above are owned by the payee;
(ii) where any income is credited to any account, whether called "Suspense
account" or by any other name, in the books of account of the person liable to
pay such income, such crediting shall be deemed to be credit of such income to
the account of the payee and the provisions of this section shall apply
accordingly.
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1. Ins. by Act 32 of 1994, s. 40 (w.e.f. 1-6-1994).
2. Subs. by Act 32 of 2003, s. 77, for certain words (w.e.f. 1-6-2003).
3. Subs. by Act 22 of 1995, s. 35, for "deduct income-tax thereon at the rate of
twenty per cent." (w.e.f. 1-7-1995).
4. Subs. by Act 33 of 2009, s. 62, for clauses (a), (b) and (c) (w.e.f.
1-10-2009).
5. Subs. by Act 7 of 2019, s. 10, for "one hundred eighty thousand rupees" (w.e.f.
1-4-2019). Earlier it was substituted by Act 14 of 2010, s. 40, for "one hundred
and twenty thousand rupees" (w.e.f. 1-7-2010).
6. Ins. by Act 20 of 2002, s. 77 (w.e.f. 1-6-2002).
7. Ins. by Act 20 of 2015, s. 45 (w.e.f. 1-6-2015).
8. Subs. by Act 29 of 2006, s. 15, for clause (i) (w.e.f. 13-7-2006)
Section 194DA Payment in respect of life insurance policy
Section 194E Payments to non-resident sportsmen or sports associations
Section 194EE Payments in respect of deposits under National Savings Scheme, etc
Section 194F Payments on account of repurchase of units by Mutual Fund or Unit Trust of India
Section 194G Commission, etc., on the sale of lottery tickets
Section 194H Commission or brokerage
Section 194IA Payment on transfer of certain immovable property other than agricultural land
Section 194IB Payment of rent by certain individuals or Hindu undivided family