Individual / HUF whose total sales, gross receipts or turnover ≤ ₹ 1 crore (business) or ≤ ₹ 50 lakhs (profession) during the immediately preceding F.Y. (these may be covered under 194-IB instead).
## Payee
Any resident.
## Threshold
> ₹ 50,000 per month or part of a month.
> Note: Threshold is now calculated on per-month basis (not aggregate annual basis as earlier).
## Rates of TDS
Nature of Asset
Rate
Plant & Machinery / Equipment
2%
Land or Building, Land appurtenant to a building, Furniture or Fittings
10%
## When to Deduct
At the time of credit OR payment, whichever is earlier.
## Special Clarification
No TDS under section 194-I on remittance of Passenger Service Fees (PSF) by an airline to an airport operator [CBDT Circular No. 21/2017 dated 12.06.2017].
Worked example
### Example 1
Example 1: XYZ Ltd. pays monthly rent of ₹ 60,000 for office premises to a resident landlord.
Confusing 194-I (small payers exempt) with 194-IB (specifically for small individuals/HUF paying rent)
Deducting TDS on Passenger Service Fees paid to airport operators by airlines
Using annual aggregate threshold (old law) instead of new ₹ 50,000 per month threshold
Bare-Act text Section 194-I · Income-tax Act, 1961 · click to expand
Any person, not being an individual or a Hindu undivided family (subject to threshold), who is responsible for paying to a resident any income by way of rent, shall, at the time of credit or payment, whichever is earlier, deduct income-tax thereon at the rate of two per cent for the use of any machinery or plant or equipment, and 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 where income credited/paid during the previous year does not exceed ₹ 50,000 per month or part of a month.