Invoral
How it works Features Pricing
Free tools
GST invoice calculator TDS calculator & section finder About
Sign in Start free
Tax year 2026-27

Section 393(1) Sl. No. 2(ii) TDS: rent

Earlier Section 194I · Codes 1008, 1009

From 1 April 2026, TDS on rent is deducted under Section 393(1), Table Sl. No. 2(ii), of the Income-tax Act, 2025. It was earlier deducted under Section 194-I of the Income-tax Act, 1961.

TDS calculator: Section 393(1) Sl. No. 2(ii)

Section 393(1) Sl. No. 2(ii) at a glance

PaymentNew sectionCodeRateThresholdOld section
Rent of land, building (including factory building), furniture or fittings393(1) Sl. No. 2(ii).D(b)100910%₹50,000 for a month or part of a month194-I(b)
Rent of plant, machinery or equipment393(1) Sl. No. 2(ii).D(a)10082%₹50,000 for a month or part of a month194-I(a)

Two rates, by what is rented

Rent of land, a building (including a factory building), furniture or fittings carries TDS at 10% under code 1009. Rent of plant, machinery or equipment carries TDS at 2% under code 1008.

A monthly threshold

TDS applies where the rent exceeds ₹50,000 for a month or part of a month.

Rent paid by an individual or HUF

An individual or HUF who is not a specified person deducts TDS on rent at 2% where it exceeds ₹50,000 for a month or part of a month, under Section 393(1) Sl. No. 2(i) (earlier Section 194-IB), and deposits it with Form 141. See the guide to Section 393(1) Sl. No. 2(i).

Worked example. On ₹1,00,000, TDS at 10% (code 1009) is ₹10,000, and ₹90,000 is paid.

Rates are before any surcharge and cess. Lower-deduction certificates, payees without a PAN and other conditions in the Act can change the TDS. This page is a general guide, not tax advice: confirm with your CA or the sources below.

FAQ

Questions, answered

Rent of land, building (including factory building), furniture or fittings: Section 393(1) Sl. No. 2(ii).D(b) (code 1009). Rent of plant, machinery or equipment: Section 393(1) Sl. No. 2(ii).D(a) (code 1008). It was earlier Section 194I of the Income-tax Act, 1961.

Rent of land, building (including factory building), furniture or fittings: 10%; rent of plant, machinery or equipment: 2%. Rates are before any surcharge and cess.

₹50,000 for a month or part of a month.

No. Where GST is shown separately on the invoice, TDS is worked out on the rent before GST.

Other TDS sections

Section 392Codes 1001–1004 · SalaryEarlier Section 192 Section 393(1) Sl. No. 1(i)Code 1005 · Insurance commissionEarlier Section 194D Section 393(1) Sl. No. 1(ii)Code 1006 · Commission and brokerageEarlier Section 194H Section 393(1) Sl. No. 2(i)Form 141 · Rent paid by individualsEarlier Section 194IB Section 393(1) Sl. No. 3(i)Form 141 · Purchase of propertyEarlier Section 194IA Section 393(1) Sl. No. 5Codes 1020–1022 · Interest other than on securitiesEarlier Section 194A Section 393(1) Sl. No. 6(i)Codes 1023, 1024 · ContractorsEarlier Section 194C Section 393(1) Sl. No. 6(ii)Form 141 · Payments by individuals and HUFsEarlier Section 194M Section 393(1) Sl. No. 6(iii)Codes 1026–1028 · Professional and technical feesEarlier Section 194J Section 393(1) Sl. No. 8(ii)Code 1031 · Purchase of goodsEarlier Section 194Q Section 393(1) Sl. No. 8(iv)Codes 1033, 1034 · Business perquisitesEarlier Section 194R Section 393(1) Sl. No. 8(v)Code 1035 · E-commerce operatorsEarlier Section 194O Section 393(3) Sl. No. 5Codes 1064, 1065 · Cash withdrawalsEarlier Section 194N Section 393(3) Sl. No. 7Code 1067 · Payments to partnersEarlier Section 194T

Complete TDS rate chart for tax year 2026-27 →

Section 393 explained →   TDS section codes list →

Sources

Taken only from the Income Tax Department's official publications, as in force on 17 October 2026:

Invoices with the right TDS

Invoral prints the new section, code and net amount on every invoice with TDS. Start free: 14 days of everything in Pro, then the Free plan. No card needed.

Start free →