<s>[INST] What is the rate at which tax is required to be deducted under section 194-I? [/INST] The rate of deduction of tax at source (TDS) is 2% in case rent is paid for the use of plant, machinery, or equipment. However, if rent is paid for the use of land, building (including factory building), or land appurtenant thereto or furniture or fittings, the rate of tax would be 10%.

 Further, these rates will not be enhanced by surcharge or health and education cess.​ </s>