TDS on rent: what is the difference between Section 194-I and 194-IB?
Bottom line: Section 194-I applies to businesses and 194-IB to individuals/HUFs not under audit — both now use a ₹50,000-a-month threshold, but the rates differ.
1. Section 194-I
For companies, firms and others (not an individual/HUF outside audit). TDS is 10% on land, building and furniture, and 2% on plant and machinery. The threshold is ₹50,000 per month (changed from ₹2,40,000 a year on 1 October 2024).
2. Section 194-IB
For an individual or HUF not liable to tax audit, paying rent above ₹50,000 a month. TDS is 2% (reduced from 5% on 1 October 2024), deducted once a year or when you vacate. No TAN is needed — deduct using your PAN.
Estimate the deduction with our TDS Calculator.