TL;DR for CAs
- 194I applies to specified persons paying rent.
- 194-IB applies to individuals/HUFs not under tax audit.
- Thresholds and deposit mechanics differ.
What it is
Two parallel provisions cover TDS on rent depending on the payer's profile.
Who it applies to
Companies/firms under 194I; individuals/HUFs under 194-IB when rent exceeds monthly threshold.
Key provisions
- Rate differences for plant/machinery vs land/building
- 194-IB Form 26QC process
- PAN quoting requirements
Practical tips for CAs
Identify which section applies before first rent payment of the year.
Common mistakes
Applying 194I to non-audit individuals; missing 26QC; wrong property classification.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.