Deduction of tax at source from payment of rent under section 194I of the Income-tax Act, 1961--Clarification regarding

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....oduced section 194-I in the Income-tax Act, 1961, which provides for deduction of tax at source from payment of income by way of rent. This section as amended by the Finance Act, 1995, reads as follows : " 194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person any income by way of rent, shall, at the time of credit of such income to t....

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....se, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings, and the land appurtenant thereto, whether or not such building is 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 ....

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....n made by the tenant ? Answer: In cases where the tenant makes a non-refundable deposit tax would have to be deducted at source as such deposit represents the consideration for the use of the land or the building, etc., and, therefore, par-takes of the nature of rent as defined in section 194-I. If, however, the deposit is refundable, no tax would be deductible at source. It is further clarifie....