Next dueTDS / TCS
31 OCTForm 24Q / 26Q · TDS return · Jul–Sep 2026in 7 days 7 NOVTDS / TCS deposit · Deducted in Oct 2026in 14 days 15 JANForm 27EQ · TCS return · Oct–Dec 2026in 83 days 15 JUNForm 16 · Salary TDS certificate · FY 2026-27in 234 days 30 OCTAOC-4 · Financial statements · FY 2025-26in 6 days 11 NOVGSTR-1 · Outward supplies · Oct 2026in 18 days 15 NOVPF & ESI · Contributions · Oct 2026in 22 days 20 NOVGSTR-3B · Summary return · Oct 2026in 27 days
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TDS & TCS

Section 194I TDS with Example and Due Dates

Here is a worked example of TDS under Section 194I (Rent of land/building or plant & machinery), along with the deposit and return due dates. Section 194I — key details...

Written byDirector, TaxClue
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Updated
Reading time
4 min
Questions
4 answered
  • Medium Complexity
Topic
TDS & TCS
Published
August 20, 2026
Last updated
Aug 20, 2026
Reading time
4 min
0:00
Last updated: August 2026Verified against: Government sources

Section 194I TDS explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Here is a worked example of TDS under Section 194I (Rent of land/building or plant & machinery), along with the deposit and return due dates.

Section 194I — key details

Section194I
Nature of paymentRent of land/building or plant & machinery
TDS rate10% (land/building); 2% (plant & machinery)
Threshold limit₹6,00,000 a year
Who deductsTenants (other than individuals not under audit)

Example

A company paying ₹8,00,000 annual office rent deducts 10% TDS.

Due dates & returns

  • Deposit TDS by the 7th of the following month (April–February); by 30 April for March
  • File quarterly TDS returns — Q1 31 Jul, Q2 31 Oct, Q3 31 Jan, Q4 31 May
  • Issue TDS certificates (Form 16/16A) after filing the return
  • Late deposit attracts 1.5% interest per month; late filing ₹200/day under Section 234E

TDS compliance essentials

Whichever section applies, the core TDS process is the same:

  • Obtain a TAN before deducting any TDS
  • Deduct at the correct rate at the time of credit or payment, whichever is earlier
  • Deposit the TDS by the 7th of the next month using the right challan
  • File quarterly TDS returns (24Q/26Q/27Q) and issue Form 16/16A to the payee
  • Verify deductions in Form 26AS/AIS and reconcile before filing

Related Section 194I guides

TDS compliance under Section 194I, done right

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Quick recapKey facts & short answers

Key Facts About Section 194I TDS

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the TDS rate under Section 194I?

The TDS rate under Section 194I is 10% (land/building); 2% (plant & machinery) on Rent of land/building or plant & machinery.

What is the threshold for TDS under Section 194I?

TDS under Section 194I applies when the payment crosses ₹6,00,000 a year.

Respond to an intimation while it is still an intimation.

— TaxClue Direct Tax Desk

Section 194I TDS: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Why This Matters

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in tds tcs are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end tds tcs support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in tds tcs are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

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Monika Sharma Director at TaxClue
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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 4 questions readers ask most on this topic.

The TDS rate under Section 194I is 10% (land/building); 2% (plant & machinery) on Rent of land/building or plant & machinery.

TDS under Section 194I applies when the payment crosses ₹6,00,000 a year.

Tenants (other than individuals not under audit).

By the 7th of the following month (30 April for March), with quarterly returns and TDS certificates thereafter.

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