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<h1>TDS Rates Under Section 194-I: 2% for Plant/Machinery Rent, 10% for Land/Building/Furniture Rent, No Additional Cess.</h1> Under section 194-I of the Income Tax Act, tax is deducted at source at a rate of 2% when rent is paid for the use of plant, machinery, or equipment. For rent paid for the use of land, buildings (including factory buildings), or land appurtenant thereto, or furniture or fittings, the TDS rate is 10%. These rates are not subject to additional surcharges or health and education cess.