Income Tax Act, 2025
Section 5: Ins. by Act 22 of 2007, s. 55 (w.e.f. 12007).
5. Ins. by Act 22 of 2007, s. 55 (w.e.f. 12007).
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1[194-I. Rent.—2[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, 3[deduct income-tax thereon at the rate of—
4[(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 amount of such income or,
as the case may be, the aggregate of the amounts of such income credited or paid or likely to be
credited or paid during the financial year by the aforesaid person to the account of, or to, the payee,
does not exceed 5[two hundred and forty thousand rupees]:
6[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 the monetary limits
specified under clause (a) or clause (b) of section 44AB 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:]
7[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,—
8[(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,—
(a) land; or
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); or
(d) machinery; or
(e) plant; or
(f) equipment; or
(g) furniture; 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.]
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 under this section where the amount of such income or,
as the case may be, the aggregate of the amounts of such income credited or paid or likely to be
credited or paid during the financial year by the aforesaid person to the account of, or to, the payee,
does not exceed 5[two hundred and forty thousand rupees]:
6[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 the monetary limits
specified under clause
or clause
of section 44AB 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:]
7[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
of section 10, owned directly by such business trust.]
Explanation.—For the purposes of this section,—
8[
“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,—
land; or
building (including factory building); or
land appurtenant to a building (including factory building); or
machinery; or
plant; or
equipment; or
furniture; or
fittings,
whether or not any or all of the above are owned by the payee;]
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.]