Identify Residential Status of Landlord
This query is : Resolved
17 February 2023
Hello Members,
I pay rent above INR 50,000 for my property. As per the Income Tax rules, I am supposed to deduct 5% TDS on the rental payments if the same exceeds. 50,000.
I got to know that owner is a NRI and thus provisions of section 195 would apply. However owner has never communicated the same to us in any ways like :
The rental agreement shows his permanent address of India Location only.
The bank account wherein the deposit is being done is Savings account wherein I deposit the rent on monthly basis.
Few Queries on the above :
1. Can I assume the owner to be a resident as there is no upfront communication from his end specifically about this status as NRI? Going with the above assumption, can I deduct TDS @5% as per the applicable rates?
2. Any repercussion for me if I failed to deduct tax as per the provisions of section 195.
Regards
I pay rent above INR 50,000 for my property. As per the Income Tax rules, I am supposed to deduct 5% TDS on the rental payments if the same exceeds. 50,000.
I got to know that owner is a NRI and thus provisions of section 195 would apply. However owner has never communicated the same to us in any ways like :
The rental agreement shows his permanent address of India Location only.
The bank account wherein the deposit is being done is Savings account wherein I deposit the rent on monthly basis.
Few Queries on the above :
1. Can I assume the owner to be a resident as there is no upfront communication from his end specifically about this status as NRI? Going with the above assumption, can I deduct TDS @5% as per the applicable rates?
2. Any repercussion for me if I failed to deduct tax as per the provisions of section 195.
Regards
17 February 2023
Ask him to provide copy of last year's ITR filed, to ascertain his residential status.
17 February 2023
But is it my responsibility to check the status or Can't I directly assume it to be resident and follow the rules as applicable as nothing is stated on the rent agreement and bank account is also is regular savings account?
17 February 2023
If you have any doubt about his residential status, it is always better to get it verified, before getting involved in any litigation. Otherwise, he should have declared himself as resident Indian somewhere in writing.
18 February 2023
Most welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Gst on travel by air for business purposes
- ITR-Capital Gain
- Taxation on Old jewellery sold
- Reporting in TDS return
- ITR 44AD SECTION
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Residential status of non resident
- GST ISD Query on various AMCs
- TDS refund Indemnity Bond
- ITC BENEFIT ON BROKRAGE PAID
- PF wage ceiling
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
