17 July 2023
I live in a rented flat in Noida, U.P., paying a rent of less than 2 lakhs per annum (INR). The flat owner is an NRI residing in Dubai, UAE. I understand that India has a Double Tax Avoidance Agreement with the UAE.
Please advise whether I, as a tenant, am liable to deduct TDS before paying rent every month to the NRI owner. If yes, then how much is the deduction and how should I go about the formalities of deducting and depositing this amount to the tax authorities? The rented flat is for residential use only.
17 July 2023
Rate of TDS on rent paid to NRI landlord is at 30% +surcharge + cess u/s. 195 IT act. You must apply for TAN and pay the TDS deducted to treasury by 7 th of next month positively. Following payment you must complete Form 15CA and submit it to the Income Tax Department online.
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