194-I Rent 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, deduct income-tax thereon at the rate of—
(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 income by way of rent credited or paid for a month or part of a month by such person to the account of, or to, the payee, does not exceed fifty thousand rupees:]
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 one crore rupees in case of business or fifty lakh rupees in case of profession 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:
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,—
(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,—
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); 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. 1169 1170 1171 1172 1173 1174 1175 1176 1177 1178 1179 1180 1181 1182 1169 Ins. by Act 28 of 2016, s. 22 (w.e.f. 1-6-2016). 1170 Ins. by Act 18 of 2005, s. 13 (w.e.f. 1-4-2006). 1171 Ins. by Act 21 of 2006, s. 10 (w.e.f. 1-4-2006). 1172 Ins. by Act 21 of 2006, s. 10 (w.e.f. 1-6-2006). 1173 Ins. by Act 41 of 1972, s. 2 (w.e.f. 1-4-1962). 1174 Ins. by Act 17 of 2013, s. 8 (w.e.f. 1-4-2014). 1175 Subs. by Act 32 of 2003, s. 19, for sub-clause (iii) (w.e.f. 1-4-2004). 1176 Ins. by Act 20 of 2002, s. 20 (w.e.f. 1-4-2003). 1177 Subs. by Act 18 of 1992, s. 16, for clause (b) (w.e.f. 1-4-1993). Earlier amended by Act 67 of 1984, s. 10 (w.e.f. 1-4-1985), Act 4 of 1988, s. 13 and 3 of 1989, s. 95 (w.e.f. 1-4-1989). 1178 Subs. by Act 20 of 2002, s. 20, for “eighteen per cent.” (w.e.f. 1-6-2002). 1179 Subs. by Act 33 of 2009, s. 15, for Items
(2) (w.e.f. 1-4-2010). 1180 Ins. by Act 3 of 1989, s. 9 (w.e.f. 1-4-1989). 1181 Clause
(c) omitted by Act 4 of 1988, s. 13 (w.e.f. 1-4-1989). 1182 Clause
(d) omitted by Act 26 of 1988, s. 11 (w.e.f. 1-4-1989).