Form 15CA/15CB on Residential Rent Payment to NRO Account

Save Share

This query is : Open

Quick Summary

This discussion clarifies the process of paying residential rent to an NRI holding an NRO account in India. It confirms that Forms 15CA/15CB are not required for payments made within India. The conversation then moves to quarterly TDS filing, identifying Form 27Q as applicable for NRI payments, with a TDS rate of 31.2% (30% + 4% cess) under Section 195. A specific technical issue regarding the validation error in filing Form 27Q for the December 2023 quarter, due to the payment date falling into the next financial year, is also highlighted.

Abhijit

Abhijit (Querist)
Follow

04 October 2023 Greetings,

If a person has to pay monthly rent (INR 50K+) for a residential property to an NRI in a NRO account in an Indian bank account in INR - is it necessary to fill form 15CA/15CB?

Also, will be deducting TDS at 30%+4% cess.

Please guide.

Thank You.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 October 2023 No need for 15CA/15CB as funds remitted within India.

Message likes : 1 times

Abhijit

Abhijit (Querist)
Follow

28 January 2024 Taking my query further - should I file quarterly TDS of 26Q or 27Q?

Monthly TDS payment challan receipt has Nature of Payment - 94I.

So what should be selected for "Section Under Which Payment Made" for quarterly TDS filing?

Please guide.

Thank you for you valuable guidance and time.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 January 2024 It's payment to NRI.
27q applicable 195 TDS at 30% with cess applicable.
As per section 195 of the Income Tax Act of 1961, tenants must deduct a TDS of 31.2% from the rental amount if their landlord is an NRI

Message likes : 1 times

Abhijit

Abhijit (Querist)
Follow

30 January 2024 Respected Sir,

Thank you for your valuable guidance.

Have prepared form 27Q file using RPU software, however I am getting validation error mentioned below

- T-FV-4111 Date on which Amount paid/Credited/Debited must be within the Financial Year and before the End Date of Quarter.

I am filing TDS Return 27Q for Q3 (Quarter Ending 31st Dec 2023 and TDS Return Date of 31st Jan 2024)

For month of October 2023 - TDS paid on 5th November 2023
For month of November 2023 - TDS paid on 5th December 2023
For month of December 2023 - TDS paid on 5th January 2024

It seems, the error is thrown only when I enter TDS details for the month of December 2023 which was paid on 5th January 2024. I am using the TDS payment dates for Date of Payment and Date of Deduction in RPU software.

If I remove the entry for December 2023, the TDS return file is VALIDATED.

So how do I include the details of TDS deduction for the month of December 2023 or am I required to only include details of TDS deduction for the months of October 2023 and November 2023 for quarterly TDS returns for quarter ending on 31st December 2023 (Q3)?

Please guide.

Thank you for you valuable guidance and time.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 January 2024 No idea keeping the query open for other experts.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now