“section 194I rent”

A composite agreement, even if charges are broken down, cannot be dissected to apply Section 194I for TDS on rent when the agreement is a business arrangement for mutual obligations.

A one-time payment of lease rent, even if commuted and discounted over a long period like 90 years, is revenue in nature and therefore an allowable business expenditure. The Assessing Officer must record satisfaction before applying Rule 8D for disallowance under Section 14A.

An assessee is not liable for TDS default under section 201(1) on payments to NOIDA Authority for lease rents, but the interest liability under section 201(1A) may still apply if the deductee has offered such income. However, the conclusion regarding TDS default applies prospectively.

Payments for services are not rent and thus do not attract TDS under Section 194-I of the Income Tax Act, unless the payment is specifically for the use of an asset in the nature of land, building, machinery etc. Section 194C applies to such service payments.

Common Area Maintenance (CAM) charges paid by a tenant are considered rent and are subject to TDS under Section 194-I of the Income Tax Act, even if paid to a third party, as the term 'rent' is broadly interpreted to include payments for the use of property and associated services.