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Section40
The Finance Act, 1994

Insertion of new section 194-I

In force Act 32 of 1994 As on 17 Oct 2026

Act 32 of 1994 Ministry Finance Enacted 13 May 1994 Cited by 1 provision

Section 40 of the Finance Act, 1994 deals with insertion of new section 194-I. Insertion of new section 194-I. 40. After section 194H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1994, namely:— '194-I. The Act was enacted on 13 May 1994.

Insertion of new section 194-I.

40. After section 194H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1994, namely:—

'194-I. Rent.—Any person, not being an individual of 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 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, deduct income-tax thereon at the rate of twenty per cent.

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 one hundred and twenty thousand rupees.

Explanation.—For the. purposes of this section,—

(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 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 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.'.

[Finance Act, 1994]

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Section 40, The Finance Act, 1994 (Act 32 of 1994).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. Income-tax Act s. 194H Commission or brokerage

Referred to by 1

  1. s. First Schedule First Schedule

Questions about Section 40

What does Section 40 of the Finance Act deal with?

Section 40 of the Finance Act is headed "Insertion of new section 194-I". Insertion of new section 194-I. 40. After section 194H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1994, namely:— '194-I.

How do I find court cases under Section 40 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 1994 40, section 40 Finance Act 1994, section 40 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 40 of the Finance Act, and has it changed?

Its own text turns on Income-tax Act 194H (Commission or brokerage), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was Section 40 of the Finance Act enacted?

Section 40 of the Finance Act, cited as Finance Act 1994 40, was enacted on 13 May 1994 as Act 32 of 1994. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.