(1) Where any specified person rents—

(a) any house property;

(b) hotel or guest house;

(c) empty premises or plant or machinery; or

(d) any water body other than a Government water body,

the said person shall deduct tax at the rate of 5% (five percent) on the rent payable while paying the rent of the said property.

(2) Where, after the assessment made for the relevant year, it is found that no tax was payable by the owner of the house property or the amount of tax deducted is in excess of the amount payable, the amount deducted shall be refunded,—

(a) if no tax was payable, in full; or

(b) if the amount deducted is in excess of the amount payable, the amount so in excess.

(3) Where the Deputy Commissioner of Taxes, on an application made in this behalf, gives a certificate in the prescribed form to an owner of house property that, to the best of his belief, the owner is not likely to have any assessable income during the year or the income is otherwise exempted from payment of income tax under any provision of this Act, payment referred to in sub-section (1) shall be made without any deduction until the certificate is cancelled.

(4) For the purposes of this section, “rent” means any payment, by whatever name may be called, under any lease, tenancy or any other agreement or arrangement for the use of any house property or hotel accommodation including any furniture, fittings and the land appurtenant thereto.