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TDS on rent payment to NRI

30 September 2016

The person has taken the premises situated in India on rent. The property belonging to NRI. Payments made by the person will attract the TDS ? If yes, @ what rate ?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 30 September 2016

Under the provisions of section 195 of the Income-tax Act, every person responsible for making a payment to the non-resident, in respect of any income chargeable to tax in India, is required to withhold tax at an appropriate rate at the time of payment or credit whichever is earlier. In this connection, if the person making payment to non-resident believes that whole of such payment is not chargeable to tax, he is required to obtain a no objection certificate from the income tax authorities to determine whether the tax has been correctly determined on the remittance to a non-resident.

No threshold limit, and TDS @ 30% for individual.